Fund Management

As a UCITS Management Company, Framont is authorised to manage undertakings for collective investment in transferable securities (“UCITS”). As an Alternative Investment Fund Manager, Framont is authorised to provide management services to alternative investment funds (“AIFs”).

Framont is in a position to establish ad hoc funds investing in diverse asset classes.

Framont is able to support promoters in the establishment of sub-funds, whether through a UCITS, AIF or NAIFs, taking into account the intended investment objective, policies and restrictions.

Framont is able to co-ordinate directly with a team of experts who may assist in structuring the most appropriate vehicle for investment by underlying investors.

Our Philosophy

We partner with you to create and launch your dedicated investment funds. Whether you are a family office, a wealth manager, a distributor, a start-up hedge fund or an investment manager, we can assist you in developing and launching your own investment vehicle or to launch a sub-fund within our existing investment fund platforms.

Through our experience we can assist you on a number of fronts, depending on your needs. We can provide you with a wide range of services including: outsourcing of certain services, structuring, coordination of fund launches, assistance in investment processing, investor relations, investment management and distribution services.

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 over 670 investment funds (including sub-funds), with the investment funds industry having a combined net asset value of €10.8 billion as at the end of 2017.

Over the past decade, Malta has gained a good reputation as an ideal jurisdiction for small to medium financial companies and start-ups and for the establishment of investment funds.

Main Advantages

When setting up an investment fund in Malta the fund might benefit from some or all of the following advantages:

  • Full segregation of your investment
  • Use of reliable banks for your deposits
  • Ad hoc investment strategy and targets
  • Full disclosure of processes and costs
  • Applicability of a legislative framework which is flexible and market driven
  • Exposure to regulated financial products
  • Certainty of receiving reports and other relevant computations from our team of professionals
  • Possibility to invest in financial products
  • Fundrasing made easier through a European passport
  • Minimal fiscal impact for non-resident investors***

Malta offers a competitive domicile for funds and their fund management operations:

  1. cost effective set-up;
  2. European regulation applies placing investors on the same level playing field and granting them European recognised rights;
  3. it has highly qualified professionals working in the funds industry;
  4. it offers a more pro-active authorisation process handled by the Maltese financial services regulator: the Malta Financial Services Authority;
  5. offers tax effective solutions for the investor***

Tax Advantages***:

  1. exemption from income tax and capital gains tax at both the fund level and at a non-resident investor level as long as more than 85% of the value of its assets is situated outside Malta;
  2. investment income received by the Fund is not subject to any withholding tax;
  3. no withholding tax is due on dividends paid out to non-residents;
  4. no tax is payable by non-resident investors when they dispose of their investment;
  5. no stamp duty charged on share issues or transfers
  6. no tax on the net asset value of the scheme

*** Warning: 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.

Why Malta

  • Malta is placed among the top global financial centres;
  • government stability;
  • it has a strategic geographical location and is part of the European Union;
  • low crime rate;
  • high percentage of import and export of hi-tech products;
  • a number of multinationals established an interest in the Maltese market;
  • positive trend of foreign direct investment, both incoming and outgoing;
  • efficient tax rate system;
  • concluded over 60 double taxation treaties and is a member of the OECD;
  • excellent regulation of banks and the financial services sector;
  • an open-minded and approachable financial services regulator; and
  • highly skilled professionals.

Framont and the Funds Industry

Framont can offer its assistance with the setting up of an investment fund solely for the promoter or for a sub-fund which will form part of one of the following umbrella SICAVs, depending on the type of sub-fund which the promoter intends to set up:

  • Lane Bridge UCITS SICAV plc, the umbrella SICAV for any undertakings for the collective investment of transferable securities (“UCITS”) sub-funds;
  • Lane Bridge SICAV plc, the umbrella SICAV for alternative investment fund (“AIF”) sub-funds; and
  • Global Series SICAV plc, the umbrella fund for any notified alternative investment fund (“NAIF”) sub-funds.

Collective Investment Schemes (CIS)

UCITS Schemes

Undertakings for Collective Investment in Transferable Securities (“UCITS”) 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 the UCITS scheme follows certain notification procedures. A UCITS Scheme offers a high degree of investor protection and is recognised by regulators worldwide. It can be marketed to both retail and institutional investors.

Main features for UCITS Sub-funds

  • open-ended fund;
  • may benefit from passporting rights in different EEA jurisdictions;
  • the sub-fund/s are regulated by MFSA;
  • fast processing of the sub-fund/s application if a sub-fund is being established within an existing umbrella fund;
  • cost effective;
  • available to retail and professional clients.

Alternative Investment Funds (AIFs)

An Alternative Investment Fund (“AIF”) is a collective investment scheme managed by a full scope AIFM (such as Framont) and through which certain types of investors may invest in. AIFs are authorised by the MFSA and may be marketed to professional investors.

Main features for AIF Sub-funds

  • May be open-ended, open-ended with closed ended features or closed-ended;
  • may benefit from passporting rights in different EEA jurisdictions;
  • the sub-fund/s are regulated by MFSA;
  • fast processing of the sub-fund/s application if a sub-fund is being established within an existing umbrella fund;
  • this type of sub-fund may be marketed to professional but is also available (on a reverse solicitation basis) to qualifying investors.

Notified Investment Alternative Funds (NAIF)

The Notified Alternative Investment Fund (“NAIF”) is the fastest way yet to have an alternative investment fund operative on the market. 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 alternative investment fund in the List of Notified AIFs and the fund can be launched following such listing.

Main Features for NAIF Sub-funds

  • Main Aim: access to the European market in the shortest timeframe possible (within 10 business days from submission of a complete application with the MFSA);
  • May be open-ended, open-ended with closed ended features or closed-ended;
  • may benefit from passporting rights in different EEA jurisdictions;
  • not authorised by the MFSA;
  • fast processing of the sub-fund/s application if a sub-fund is being established within an existing umbrella fund;
  • this type of sub-fund may be marketed to professional but is also available (on a reverse solicitation basis) to qualifying investors.

The Notification Process
The AIFM must submit to the MFSA a notification pack (which includes inter alia confimation that due diligence has been undertaken on the directors and service providers to the NAIF (and the respective sub-fund)).

Should all documentation be up to the MFSA’s satisfaction, the MFSA will includethe AIF in the List of Notified AIFs within 10 working days from the date of filing of the duly completed notification pack.

COMPARISON

UCITS vs AIF vs NAIF Legal Requirements

RESTRICTION DETAIL UCITS DETAIL AIF DETAIL NAIF
Regulatory Status Licensed Licensed Notified
Minimum Investment No Minimum Amount (i) AIF targetting Professional Investors – No Minimum Amount
(ii) AIF targetting Qualifying Investors –
€ 100,000
(i) AIF targetting Professional Investors – No Minimum Amount
(ii) AIF targetting Qualifying Investors –
€ 100,000
Investment Resctrictions Yes
(As per the UCITS Directive and Offering Supplement)
Optional – As per Offering Supplement May only invest in financial instruments and any other instruments as indicated by the MFSA (including private equity, immovable property, infrastructure or certain nonfinancial assets i.e. vintage cars, works of art, precious metals and antiques)
Cannot be established as a loan fund
Leverage limitation As per offering documentation
Custodian Local and compulsory
Administrator Required
Offering Memorandum (“OM”) and Offering Supplement (“OS”) OM for the SICAV (the umbrella fund) and OS for each Sub-Fund
Fund Manager Required – Framont & Partners Management Ltd. (if the promoter wishes to launch a sub-fund within the investment fund platforms offered by Framont.
Sub-Investment Manager Investment Advisor Optional investment advisor or sub-investment manager
Local Legal Advisor Usually engaged
Maltese resident Director Required
Compliance Officer Required
MLRO Required

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