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Funds

Framont & Partners Management Limited (”Framont”), License No. IS/69366 is a Category 2 Investment Services Licence Holder authorised to act as a “UCITS Management Company” and “Alternative Investment Fund Manager” is a European Boutique Investment Fund platform

Fund Management

  • Framont is in a position to establish ad hoc funds investing in real estate and securities in family assets.
  • Framont is able to support the investor in the evaluation of investment strategies proposed by private clients, institutional or advisory entities in order to attain the product that best suits them, providing solutions through either UCITS funds, AIF or NAIF.
  • Identification of the most appropriate instruments to achieve each client’s objective.
  • Directly coordinate to the team of experts who assist the family and its members in wealth management.

Our Philosophy

We partner with you to create and launch your dedicated investment funds across Europe. No matter if you are a family office, a wealth manager, a distributor, a start-up hedge fund or an investment manager, with our Investment Fund platform we are able to provide you with a wide range of services including: outsourcing services, structuring, coordination of fund launches, investment processing, investor relations, investment management and distribution services for investment funds from Malta.

We can also offer our clients a one stop shop service in relation to the other Fund Services and/or Corporate Services through our trusted collaborators.

Sub-funds Setup – Why Malta

Malta hosts 580 investment funds, with the Investment Funds industry having a combined net asset value of €10 billion*.

While Malta has a good reputation as a jurisdiction for smaller and medium financial companies and start-ups, the fund sector is attracting asset management activities from all around Europe.

The Investment Funds Industry is an environment characterized by main advantages with respect to the main financial services jurisdictions such as Ireland, UK or Luxembourg. Malta and Framont through its investment fund platform offers the following main advantages.

Main Advantages

If you opt for the set-up of a Sub-fund with Framont’s investment fund platform, you will receive some benefits from the following aspects:

  • Full segregation of your investment
  • Reliable Banks for your deposits
  • Ad hoc investment strategy and targets, including the risk appetite
  • Full disclosure of processes and costs
  • Flexible, fast and personalized legislation framework, with market driven Regulatory Entity
  • Mainly regulated financial products
  • Certainty of reports, partners and computations from our team of professionals
  • Possibility to shape any needs
  • European Passporting for Sub-Fund and Asset Manager
  • No fiscal impact for non-residents investors
  • Fund & sub-fund re-domiciliation
  • Real competitive Malta environment for this product:
    1. Cost effective set up with respect to UK, Ireland or Luxembourg
    2. Same European rights and regulation
    3. High qualified professionals for Funds Industry
    4. a more pro-active authorization process from the Regulator , the Malta Financial Services Authority
    5. Tax effective solutions for the investor**

 

** Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The levels and bases of taxation are dependent on individual circumstances and subject to change and therefore it is highly recommended that you consult a professional tax advisor

Ad-hoc Sub-Funds Industry

Framont can offer the following Collective Investment Schemes (CIS) for the Setup of the Sub-funds:

  • UCITS
  • AIF
  • NAIF

The sub-fund will form part of an Umbrella SICAV.

umbrella-sicav

Collective Investment Schemes (CIS)

UCITS Schemes

UCITS (Undertakings for Collective Investment in Transferable Securities) Schemes are harmonised European retail fund products that can operate throughout the EU on the basis of a single authorisation from one member state, provided that it follows certain notification procedures. UCITS offer a high degree of investor protection and are recognised by regulators worldwide. They can be marketed to both retail and institutional investors.

Alternative Investment Fund Managers (AIFMs)

Managers of Alternative Investment Funds (AIFMs) are the main people responsible for the coordination and upholding of an invested share in an AIF. According to the Alternative Investment Fund Managers Directive (AIFMD), AIFMs are obligated to update the Malta Financial Services Authority (MFSA) with regular information pertaining to the status of their AIFs.

Alternative Investment Funds (AIFs)

An Alternative Investment Fund (AIF) is a collective investment entered into by a number of investors in terms of the Investment Services Act (1994), as well as the transposition of the AIFMD into Maltese law in July 2013. This shows the pro-activeness of the MFSA which regulates the progress and promotion of alternative funds with the intention of continually improving Malta’s fund industry.

Notified Investment Alternative Funds (NAIF)

In February 2016 the MFSA announced the launch of a new investment framework applicable for notification of Alternative Investment Funds – the “Notified AIFs” or NAIF. NAIF is the fastest way yet to have an AIF operative on the market. Third country AIFMs will be able to submit a request for notification of an AIF once the country where these have been established has been granted passporting rights pursuant to the AIFMD. The great benefit lies within the fact that new funds will be able to come onto the market faster without the need to be authorised by the MFSA and will not be subject to ongoing supervision. Within 10 business days from the date of filing of a complete notification pack, the MFSA will proceed to include the AIF in the List of Notified AIF and the fund can start being operative (source: MFSA).

UCITS Funds

Main features for UCITS Sub-funds

  • Open-ended SICAV (set up as plc) with more than a Sub-fund, Umbrella UCITS SICAV and Lane Bridge UCITS SICAV plc
  • EU-Harmonized Investment Fund
  • Regulated by MFSA
  • Competitive Costs
  • Timing: 1-2 months if SICAV already in place
  • Target: Retail Clients

Remuneration Policy
UCI TS V

AIF Funds

Main features for AIF Sub-funds

  • Open-ended SICAV (plc) with more than a Sub-fund, Umbrella AIF SICAV and Lane Bridge SICAV plc
  • EU-Passportable Investment Fund
  • Regulated by MFSA
  • Competitive Costs
  • Tax Advantages***:
    1. exemption from income tax and capital gains tax for fund and non-resident investors
    2. no withholding tax for investment income and dividends paid out to non-residents
    3. no tax is payable by non-resident investors when they dispose of their investment
    4. no stamp duty charged on share issues or transfers
    5. no tax on the net asset value of the scheme
  • Timing: 2-3 months if SICAV already in place
  • Target: Professional and Qualified Investors
*** The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The levels and bases of taxation are dependent on individual circumstances and subject to change and therefore it is highly recommended that you consult a professional tax advisor

Comparison – UCITS vs AIF Legal Requirements

RESTRICTION DETAIL UCITS DETAIL AIF
Minimum Investment € 1.000,00 € 100.000
Investment Resctrictions Yes – According to
UCITS V Directive
Yes – According to
AIFM Directive
Leverage limitation As per Os
Custodian Local and Compulsory
Offering Memorandum For the SICAV
Valore As per Os
Investment Manager Required with optional Advisor
Fund Manager Required
Local Legal Required
Indipendent Director Required
Compliance Required
MLRO Required

NAIF Funds

Main features for AIF Sub-funds

  • Launched on April 2016
  • Main Aim: access to the European market in the shortest timeframe possible
  • Not a regulated product
  • Open-ended or closed-ended, often a SICAV structure
  • Timing: 1 month
  • Target: Professional and Qualified Investors
The notification process
The AIFM must submit to the MFSA a notification pack (which includes due diligence on the shareholders, directors and service providers to the NAIF).
The MFSA will be including the AIF in the List of Notified AIFs within 10 working days from the date of filing of a duly completed notification pack.
Exceptions
Self-managed AIFs, property funds, loan funds and funds which invest in instruments and assets other than financial instruments listed in Section C of Annex I of Market in Financial Instruments Directive cannot be established as NAIFs. Collective Investment Schemes already established cannot converted to the NAIF Regime.