About Private Fund

Background on Private Funds

The managing of investments for clients who may be an individual, a group of individuals, or a juristic-person that has delegated an investment management company to perform these duties on their behalf. The client can take part in the establishment of the investment policy, investment objectives, and restrict risks within acceptable levels in the effort to obtain the best returns and benefits desired by the client. The investment management company will be involved in the asset allocation process, securities selection and determination of the appropriate timing of investments while taking into account the guidelines and investment limits prescribed by a written contract formed with the client. The portfolio structure has excellent flexibility and can be easily modified to match each client’s needs.

The client has ownership in the assets or fund which remain in the client's name while the investment management company's name is shown concurrently to indicate that it is being authorized to manage the client's investments on his/her behalf. Tax obligations associated with the investments will be according to the client's tax status.

Upon being appointed the fund manager, the investment management company shall appoint a “custodian” that has been approved by the Securities and Exchange Commission to safe keep the client’s assets and keep track of benefits associated with the securities invested by the private fund.

Investible Assets

The client may consider investing in bank deposits, government debt securities, corporate debentures, equities, unit trusts of various mutual funds, property funds, and infrastructure funds, including derivatives and alternative investments, in either domestic or foreign markets.

Fees Applied

  1. Fees to cover the management of the private fund (Management Fee)

  2. Fees to safekeep the assets (Custodian Fee)

  3. Other fees such as stamp duty, brokerage fees, audit fees (if any), etc.

Differences Between Private Funds and Mutual Funds

Private Funds
A fund that is established when an investor (or group of investors or juristic person) assigns a sum of money or assets to an investment management company to manage that money or assets on his/her behalf. The portfolio structure is highly flexible, able to be readily modified to suit the client’s demands.

Mutual Funds
A pooling of money from individual investors into a single large fund which is subsequently registered as a juristic-person. The investment management company then invests that money in various securities and assets in accordance to the fund’s investment policy as approved in the fund scheme. Each investor will be entitled to receive “unit trusts” as proof of ownership for his/her stake in the fund.

Key Highlights of Private Funds

  1. Investment policy can be set by the investor as desired
    through joint consultation with the investment management company to customize investments that match the needs of the investor and can promptly be amended to respond to changing economic conditions.

  2. Reduce the burden of investing
    by oneself as private funds offer convenience, lessen the chore of monitoring investments by oneself, handle securities transactions and keep track of investment assets.

  3. Investments are professionally managed
    by experienced professionals in the field of asset management who are skilled at investment analysis, well-informed and proactive.

  4. Portfolio risk is diversified
    appropriately for the level of risk acceptable to the client.

  5. Access to a wide variety of investment assets
    either domestic or abroad, including deployment of modern investment tools.

  6. Higher bargaining power
    is naturally achieved through an investment management company with large assets under management.

  7. A solid fund management administrative system
    which is accurate, capable of producing daily reports to enable investors to stay up to date.