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FUND PLATFORM

"Let us help you succeed"

HFH is excited to offer a unique Fund Platform opportunity to managers driven by industry needs and our evaluation of those needs with counter-parties and investors over time. The Fund Platform HFH ICC plc,  which will be located in Malta has been filed and is scheduled to launch in Q4 2011.

 
HFH ICC PLC
 
HFH are specialists in working with start up funds and helping them grow and understand the needs and priorities of managers and investors globally. This Fund Platform has been designed specifically for start-up managers and to address the hurdles of starting up and stagnation. 
 

 How does the ICC Platform work?

  •  Start-up managers buy a Fund in the Platform starting from EUR 10,000. This includes legal work.
  • The Fund can be self-managed by a 3 person investment committee or externally managed by an investment management company.
  •  The Fund Platform provides Directors, who are experienced professionals (see below), compliance officers, money laundering reporting officer and registered office services for the Fund and if required, for the manager
  • The managers can use counterparties (auditor, prime broker and administrators) with whom the Platform has negotiated discounted rates or appoint their own. For example, Deloitte will cap audit costs at EUR 5,000 per annum for Funds on the Platform (see below “Costs”).
  • The HFH Platform is the only fund platform that allows managers the option to leave/ or passport or “transfer” their whole fund out of out of the Platform and set it up as a stand-alone fund in Malta or any EU country. This is due to the HFH Platform being structured as an incorporated cell company (ICC) where each fund or cell is a "company" in its own right that can exist independently as well as within the Platform.
  •  Assets and liabilities between the Platform and between Fund’s on the Platform are segregated.
  • Your fund has your chosen brand name, its own licence and you can have management shares in your fund.
 
The ICC Platform is different to other platforms because:
 
  •  High level input by the founders at the outset to ensure you are set up correctly and understand your obligations and options. You will work with highly skilled professionals and leading counterparties at discounted rates as we share the risk with you of your success over time. 
  •  The Platform can introduce investment to you and introduce you to Platform and third-party marketers. 
  • Platform Funds can have a technical listing on the MSE from EUR 10,000 including listing sponsor fees.
  • Platform Funds are given an ISIN number so they can be tracked on Bloomberg.
  • Your Fund as a whole can transfer out of the Platform and set up as a stand alone fund in the EU only through the unique platform structure we use. 
  • The Fund can set up as a UCITS or a Professional Investor Fund (SICAV PLC). 
  • The fact Malta is in the EU means that you can market your fund to EU based investors and have other EU related options, whereas setting up in the Channel Islands, Caribbean, Asia or Mauritius means that you do not have this benefit. 
  • The Set Up and Operational Costs (see below) are below market rate for high quality counterparties on the Platform List.
  • The Platform can offer you a range of quality and cost-effective services to help you grow, including marketing support, structuring advice, risk, IT and middle and back office support.
  • Fund managers have flexibility in counter-party selection. 
  • The Fund can be self-managed (by individuals) OR externally by an investment management company.
  •  Access to Platform networks: we have strong counterparty relationships globally and can assist you in meeting and obtaining counterparties such as prime brokers, administrators and regulatory cover providers, usually at preferential rates. In particular, the Platform has relationships with prime brokers willing to act for Funds with <$20 mn seed and also between $20mn - $50mn seed (most will act for larger funds). 
  • It is important to us that you succeed and we have extensive experience in ensuring you are in the best possible position to do so. 

 

Why Malta?

 
Malta is gaining momentum as a competent, cost-effective funds jurisdiction. Malta Funds are tax exempt. The Global Financial Centers Index named it as one of the top three financial centers likely to increase in importance over the next two to three years, the World Economic Forums Global Competitiveness Index 2009-2010 ranked Malta 13 out of 133 countries for financial market sophistication. Funds have re-domiciled from the Caribbean and other European jurisdictions to Malta to take advantage of lower operational costs, efficient counter-parties, favourable tax treatment and high regulator responsiveness as well the fact that it is in the EU. The Malta Financial Services Authority (MFSA) is a highly regarded regulator. Details of funds domiciled in Malta can be found at www.mfsa.com.mt – “Securities” – “Collective Investment Schemes”. The number of non-retail funds has grown to over 400, an increase of 44% since 2007. HSBC, reports the fund sector in Malta grew by 30% in 2008, 22% in 2009 and 26% in the first quarter of 2010. See website page "Malta".
 
Current Fees (subject to confirmation)
 
Yellow shaded areas indicate upfront costs. Clear areas indicate ongoing costs. Fees will be higher for UCITS and the below relates primarily to Professional Investor Funds. (These fees are for guidance and may change, current fees should be confirmed directly with HFH).
 

Set up and Operational Costs of a Platform Fund - fees below exclude VAT which may be payable for services
 
Legal
GBP 10,000 (Offering Documents, structuring and regulatory advice, approvals for Founders, drafting IC member contracts/IMA review introductions to counter-parties, including prime brokers)
MFSA
EUR 1,000 (one time application fee); and; EUR 1,750 (incorporation fee to set up the fund) (these rates may be changed by the MFSA)
Auditor
EUR 5,000 (capped - other than in exceptional cases) –  Deloittes (Malta)
Administrator, NAV calculator, registrar and transfer agent
10 basis points p.a. without a minimum fee for upto 9 months and a minimum thereafter as negotiated.
Bank
HSBC is the Platform bank, however clients can use a different bank
Compliance Offer, MLRO, Company Secretary, Registered Office
EUR 3,000 per annum
Directors
EUR 2- 5,000 per annum each
Prime Broker
Quoted separately. Certain prime brokers will pick up part of the establishment costs for Funds on the Platform and consider funds with smaller seeding amounts.
MFSA
EUR 500 - 1,000 annual license fee



Marketing Support:  HFH Platform filed director Tom Wight also offers marketing and operational support to platform managers.
 
R. Thomson Wight
Tom has 30 years experience in the financial markets. He has traded fixed-income for Kidder Peabody, Bank of America and S.G Warburg, run capital-protected funds for Credit Suisse Private Bank and traded futures and equities for a privately held hedge fund. He has sold fixed-income government, mortgage-backed and asset-backed products to institutional clients for Smith Barney, developed and marketed an equity online trading platform for Refco, and marketed a fixed-income hedge fund. He is a partner in a risk management platform as well as a film finance and production company. Tom has worked in New York, San Francisco, Tokyo and London. He resides in Malta and holds both American and Maltese citizenship. He is a graduate of Cornell University.
 
Auditor: We have an active working experience with Deloitte Malta who are available to discuss Malta direct and indirect tax matters that may be of interest to you.  In this respect you may contact Stephen Paris – Leader – Financial Services Industry on sparis@deloitte.com.mt or Marc Alden –  Tax Leader – Financial Services Industry on malden@deloitte.com.mt.  Deloitte (Malta), will cap audit for funds launching on the HFH Platform that use their services at EUR 5,000 per annum subject to their terms and the fund having no unusual features and qualifying for this rate.
 
 Prime brokers:  HFH have experience of a range prime brokers globally and will introduce you to prime brokers that suit the AUM and strategy of your fund, noting certain prime brokers will have seed minimums. .
 
Administrators. HFH has a list of internatoinal administrators willing to offer discounted rates to funds launching of the HFH Platform. All administrators qualifying for the list must offer funds launching on the HFH Platform a Year 1 discount of upto 25%.

Middle and Back Office: Invansys (www.invansys.com) , a partner company of HFH will provide Platform funds with discounted middle and back office services. 

Non-EU Managers: The HFH Platform provides an ideal and cost-effective solution for non-EU funds and managers that want an EU presence or feeder fund.

Contact: Ashminder Email: ak@hedgefundhotel.co.uk

Call: + 44 7529 387 649