Isle of Man Experienced Investor Funds (EIF) are designed to provide a simple, inexpensive solution to meet the needs of sophisticated investors and international asset managers. At the same time such funds provide comfort to investors by ensuring proper disclosure and administration procedures. The significant features of Experienced Investor Funds are as follows:
Funds
No regulatory approval is required to launch an EIF. EIFs are exempt from the regulatory requirements of the Isle of Man Supervision Act 1988.
Management/Administration
Investment advisors can be located anywhere in the world, but the fund must be administered in the Isle of Man by an authorised fund manager, such as Dixcart Global Fund Managers Limited.
Incorporation of the Fund
Whilst the fund must be administered from the Isle of Man, it may be incorporated in any suitable jurisdiction.
Legal Personality
The fund can be established as an open ended investment company, unit trust or limited partnership.
Custodians
The fund must make proper arrangements for custody of any assets, whether with a custodial bank or prime broker, who may or may not be represented in the Isle of Man.
Fees
There are no regulatory or licence fees payable.
Advertising
There are no Isle of Man restrictions imposed on the promotion of the fund, subject to the fund only admitting experienced investors, as defined below.
Offering Document
EIFs are exempt from the requirement to provide a prospectus. However, a simple Offering Document is required and should contain all material information to enable an informed decision to be made by the experienced investor.
Investor Requirements
Each investor must be an experienced investor, who is defined as “a person who, in relation to any EIF, is sufficiently experienced to understand the risks associated with an investment in that fund”.
There is:
No limit on the number of investors
No net worth tests or declarations of wealth required by investors
No mandatory minimum subscription.
Taxation
An EIF is exempt from tax in the Isle of Man and no VAT is charged on management or investment management fees charged to an EIF.
Costs
Low operational and establishment costs in the Isle of Man, coupled with competitive support services mean that investment performance is not eroded by high fees.
Other Classes of Fund
Dixcart Global Fund Managers Limited can act as managers and administrators for Experienced Investor Funds and also for:
Professional Investor Funds – these are designed for institutional and high net worth professional investors, are unregulated and have a minimum subscription of US $100,000.
Exempt International Funds – these are unregulated private funds with a maximum of 49 members. These funds cannot be promoted to the public.
Licensed to conduct Investment Business by the Isle of Man Financial Supervision Commission.