In Anguilla you can set the administration of mutual funds, this is when you sell fund shares to the public, mutual funds raise money. Like other companies, mutual funds sold shares to the public. The money received from the sale of shares is used for the purchase of a variety of investment vehicles. As stocks, bonds and money market securities. In exchange for money given to fund shareholders, they receive an ownership position in the fund, in effect the fund's underlying securities. Mutual fund shareholders are free to sell their shares at any time, although the share price of mutual fund can fluctuate daily, depending on the performance of the values the fund.
Types of mutual funds
According to the Angilla legislation there are 3 types of mutual funds:
- Public Fund, is offering shares in the entity to the general public by issuing a prospectus and is not a private or professional.
- Private fund: is being constituted by no more than ninety-nine (99) investors whose constituent documents specify that the invitation to actions be purchased privately.
- Professional Fund, is one whose actions are available to purchase only professional investors (whose initial investment is not less than U.S. $ 100,000.00) which are defined by law as persons whose ordinary business involves managing investments or who have signed a statement that, either individually or jointly with your spouse,have a net of $ 1 million or its equivalent in another currency, and consent to be treated as professional investors.
The vast majority of Anguilla funds are set up as International Business Companies under the International Business Companies Act of Anguilla.
To register a Private Mutual Fund, one must complete an application form supported by other documents and information. The application form calls for the name, address and business activity of the Manager, the Administrator the Investment Advisor and the Custodian.
- Full names, date and place of birth.
- Addresses and citizenship
- Country of residence and length of residency
- Educational and Professional qualifications
- Employment history
- Other items of a Resume detailing the past ten years
- Details of 25% or more shareholding interests in companies in the past ten years
- Nominee details (if any)
- Other questions detailing business, litigation and general legal background
- The names of three non-related referees
The application must be accompanied by:
- Constitutional Documents
- Certified copies of Memorandum and Articles and Certificate of Good Standing.
The documents required are:
The documents required are:
- the minutes and articles of associations
- articles of incorporation
- other instrument of constitution
Registration and / or recognition in Anguilla: The public fund must be registered under the Act before the start of its operations or operate or manage its activities in or from within Anguilla. For the registration you should also add your business plan detailing:
Investment objectives, types of investments, restrictions on investment, risk factors of the fund, actual or expected size of shareholders investment base, valuation arrangements and frequency of valuations and redemption mechanisms.
Public funds registration
In anguilla if you want to constitute a Public funds you should apply for registration under the Act. All applications are made to the Commission using the appropriate form accompanied by:
- A statement setting out the nature and scope of the business to be carried on by the applicant
- The name of any other country or jurisdiction where the applicant is carrying on or intends to carry on business
You have to pay an application fee that should be paid and certified copies of the constitutional documents of the fund submitted. It is required to present the address of the applicant’s place of business and address for service in Anguilla, name and address of a person resident in Anguilla who is authorized to represent the applicant and to accept service on its behalf and the address of any place (s) of business that the applicant may have outside Anguilla should also be submitted. Applications for licensing managers and administrators must be accompanied by :
- the application fee and include a statement of the financial
- human resources and administrative facilities available to the applicant.
Public funds must maintain accounting records and prepare annual audited financial accounts for submission to the Commission. All licensees are subject to a Code of Practice governing matters relating to the conduct of business, financial resources, handling of clients money etc.
The Mutual Funds Act (MFA) (Mutual Funds Act) was introduced in 2004. Anguilla funds can be created as companies, protected cell companies or companies. The Act defines a mutual fund company incorporated, a company set up a mutual fund (unit trust) organized or other similar body formed under the laws of Anguilla or other jurisdiction, that recompile and to pool investor money in order to invest collectively, and issue shares entitling the holder of such shares to receive on demand an amount calculated by reference to the value of a proportionate share of all or part of assets net of the company, partnership, mutual fund (unit trust) or similar entity.
Benefits of Mutual Funds:
- Diversification: to join the funds, more investment opportunities, because mutual funds invest in a variety of values.
- Professional Management: As a mutual fund investor has access to the services of professional managers, who conduct a more thorough investigation of the companies where the fund will invest.
- Transparency: due to existing regulations, the mutual fund industry is very transparent. Investments can be located, to locate the money.
- Variety: There is a type of mutual fund for almost any investment strategy. Among the types of mutual funds are: fund re-location of assets, balanced funds, funds compounds, bond funds, capital appreciation fund, clone fund, closed-end funds, mixed funds, endowment funds, global funds, growth funds , growth and income funds, etc.