A private fund is an interesting alternative for individual investors and juristic persons who have specific investment objectives and conditions, or want to reduce investment burden. The client is able to structure his/her own investments as desired, whether focusing on the capital market or any other financial instruments.
A private fund is a contract made with a non-juristic person, which means the ownership rights of the assets still belong to the client. The name of the asset management company will also appear alongside to indicate its role as manager of the assets of the client.
The client has control over the investment policy which the asset management company will follow to achieve the objectives and the policy which the client have established.
The assets of the client will be left under the care of a trustee in order to prevent conflict of interests.
The trustee keeps the client’s assets in a secure and safe location, separate from its own assets.
The Securities and Exchange Commission regulates private funds managed by licensed asset management companies and securities trustees to ensure compliance with relevant laws and regulations.
Benefits of Private Fund Investment Services
Higher Investment Returns
More opportunities through wider selection of investment instruments
Advice from experts
Lower Investment Risks
Up to date and reliable news and information
More diversification of risks than investing by oneself
Professional management system
Staff and operations
Portfolio investment and risk control
Fixed Income Fund – a fund that focuses on debt instruments to generate interest income from instruments such as government bonds, corporate debentures, fixed income funds, and cash deposits.
Flexible Fund - a fund that allocates the portfolio between equities and fixed income instruments in accordance to the discretion of the fund manager to suit the prevailing investment climate.
Equity Fund – a fund that focuses on equity securities such as common stocks, warrants, and equity funds, to generate dividend income and capital gains.
An individual or corporate investor keen on formulating their own investment framework that accommodates their own specific requirements. The asset management company is appointed to manage the fund on their behalf.
1. The management of the fund is governed by a contractual arrangement; the private fund does not take the form of a new entity. Hence, ownership of assets remain with the client.
2. The client’s assets are kept with the trustee to protect against conflict of interests. Furthermore, these assets are kept separate from the trustee’s own assets.
3. The Securities and Exchange Commission (SEC) supervises the management and handling of private funds by asset management companies and trustees to ensure compliance with relevant laws and regulations.