INDGFM4 - Dixcart Global Fund Managers Limited

The Isle of Man is one of the largest international financial centres for the provision of fund management. The island has a considerable reputation for introducing innovative legislation, which permits new types of funds to be established, resulting in a sophisticated but flexible regulatory environment in which funds can be managed.

Dixcart Global Fund Managers Limited has a licence enabling it to act as a fund manager for a number of different funds.

Fund Management – the Potential Benefits

It is the combination of a formal structure with in-built flexibility that makes an Isle of Man Mutual Fund so attractive. No tax is levied in the Isle of Man on income or gains and there is no withholding tax.

Mutual funds provide the opportunity for a group of investors known to each other to come together to undertake specialised investments. Such investments might include; quoted shares, unquoted shares, bonds, antiques, works of art, racehorses, wine and jewellery. A syndicate form of investment provides an opportunity to scale up the amount of funds available and for individual investors, to spread the risk of the investment over a number of different items.

A centrally formulated investment strategy can simplify issues. Cost savings and a reduction in the duplication of due diligence are additional efficiencies often achieved.

Investors can be a mix of onshore and offshore investors.

Different Types of Isle of Man Fund

• Exempt International Schemes
  
  These are the least regulated type of funds within the Island and are generally considered as private investment vehicles for a number of potential investors up to a maximum of 49.
  
  Funds must not be marketed anywhere in the world to the general public and can only be aimed at connected investors and professional organisations.
  
  One benefit of this type of fund is that the regulators do not consider the fund to be a regulated scheme and therefore there is no requirement to have the scheme details viewed or approved by them.


• Professional Investor Funds (PIF)
  
  These funds are aimed at qualifying investors with assets in excess of US$ 1,000,000. They may be advertised to qualified investors with certain restrictions and the fund itself is subject to only limited direct regulation.
  
  The fund is capable of having any number of investors as long as they qualify for the US$ 1,000,000 net asset provision.


• Experienced Investor Funds (EIF)
  
  These funds are again only subject to limited direct regulation and may be marketed to persons classified as experienced investors. Loosely defined this means individuals who have sufficient experience to understand the risk associated in the investments of the fund. There is no limit to the number of investors.

Advantages of an Isle of Man Mutual Fund

• Offers a formal but flexible structure for investors with a common interest


• A tax efficient structure


• Collective cost savings and reduced duplication of due diligence


• Financial institutions are confident to trade with such structures


• The ultimate holding entity is an enduring entity, building up a track record which can be demonstrated to future investors


• Valuation periods can be selected varying from daily to annually, depending upon the requirements of the investor


• The relationship between investors is determined, allowing investors to leave the fund and new investors to join.

Summary

Dixcart Global Fund Managers Limited offers the opportunity for a number of connected investors to group together to undertake specialised investment in a cost-efficient and tax-efficient manner.

Contact Details

If you would like further information about Isle of Man investment funds, please speak to Simon Kelly in the Isle of Man office or your regular Dixcart contact.