Fund Structure

Cayman Islands

Cayman is one of the most important fund centers, and its favorable policy environment and flexible legal framework offernumerous possibilities for fund structure and investment strategy. Currently, Cayman offshore fund is one of the most common and preferred fund structures for fund managers, and are regulated by the Cayman Islands Monetary Authority (CIMA). Managed by investment management companies set up in Cayman and linked to onshore licensees, the structure ensures efficient management of funds while providing unparalleled flexibility. AcquaX will assist fund managers to incubate funds throughout the process and provide tailored value-added services.

Advatages

Proper Regulatory Mechanism

Cayman's proper regulatory mechanism ensures that its fund products remain ahead of the market, while ensuring safety supervision and not unduly restraining the creativity of fund managers.

Mature Supporting Facilities

Over the years, Cayman has developed a large number of professional service providers, which can quickly and easily set up funds to meet the different needs of clients.

Highly customized

The limited partnership of a Cayman fund is highly flexible, and the rights and obligations can be customized and adjusted through the limited partnership agreement.

Singapore VCC

Singapore's Variable Capital Company (VCC) structure, which has gained popularity recently, provides fund managers with more flexible options. The structure is supervised by the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority of Singapore (ACRA), and is regulated by the Variable Capital Companies Act (VCCA). There are no restrictions on the asset strategies and asset types that VCC can hold. It can be structured as an umbrella fund with multiple sub-funds, which has been favored by countless professionals due to its unique advantages.

Advantages

Tax Efficiency

VCC is entitled to benefit from Section 13R and 13X of the Income Tax Act of Singapore (Cap. 134) under which fund gains are exempt from tax.

Flexible Operating

The umbrella fund structure allows for economies of scale, with a shared board of directors and service providers among the sub-funds. In addition, VCC does not need to obtain prior shareholder approval when issuing shares and redeeming paid-up shares, which greatly promotes the efficiency of the fund.

Unique Bonus Mechanism

Typically, companies in Singapore are allowed to pay dividends only out of profits. VCC, on the other hand, is not subject to capital reductions, and in exceptional circumstances, VCC's shareholders can use their net assets to pay dividends.

Asset Liability Isolation

The assets and liabilities of each sub-fund under the VCC umbrella structure are separated and each sub-fund can be managed independently to meet the needs of different investors.

Risk Disclaimer

Foreign Exchange (Forex) and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. Leveraged products may not be suitable for everyone. You should ensure you fully understand the risks involved and seek independent advice if necessary. AcquaCap is is authorised and regulated by Australian Securities and Investments Commission (ASIC), reg. No.374409.