Hedge Fund Administrator, VCC Fund Administrator, Corporate Solutions Provider and Real Estate Investment Funds in a nutshell

When it comes to savings and investment, it is very important to be well aware of the options as it involves money and trust, and investing money without proper research is like walking blindfolded in a room full of knives.

We will be sharing the basics of Hedge Fund Administrator, VCC Fund Administrator, Corporate Solutions Provider, and Real Estate Investment Funds so that you make a well-informed decision.

Basics of Hedge Fund Administrator

A Hedge Fund Administrator is a service provider to the hedge fund and the main job of the administrator is to provide certain accounting and back office services to a hedge fund.

The central service is the accounting of investor contributions and withdrawals. They also compute the profits and losses for the accounting period on a monthly or quarterly basis. The administrator may also provide other back end services such as handling the subscription documents and making sure checks are cashed or wires are appropriately taken care of.

Some hedge fund administrators also provide second signer service which is intended to give investors greater assurance that a hedge fund manager can be trusted with their money. 

Under this agreement, the hedge fund manager will need to get a sign off from the administrator before the manager can make a transfer or withdraw from the fund’s account.

Basics of VCC Fund Administrator

Singapore is undoubtedly an authority at the forefront of change in the Asian fund space with a total AUM valued at S$3.3 trillion. The Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) launched the Variable Capital Company on Jan 15, 2020.

A VCC Fund Administrator is the service provider in connection to the VCC fund. It is an amalgamation of a legal entity and a fund structure that can be used for mutual funds, hedge funds, and private equity.

Under the VCC structure, several collective investment schemes can be formed either as a standalone or as an umbrella entity with sub-funds. The launch of Singapore VCC considerably enriches Singapore’s already strong positioning as an international fund management center.

To further boost industry adoption of the VCC framework in Singapore, the Monetary Authority of Singapore (MAS) also launched a VCC Grant Scheme which will help cover costs involved in integrating or setting up a VCC.

By co-funding up to 70% of expenses paid to Singapore-based service providers, the grant is roofed at S$150,000 for each application with a maximum of three VCCs per VCC Fund Administrator. As a result, during the period of the grant, it will be considerably inexpensive to set up a VCC.

Basics of Corporate Solutions Provider

Corporate Solutions Provider have been providing depositary services to businesses for quite some time but there is no denying the fact that the regulatory landscape has changed and has increased the need for professional assistance more than ever.

There are presently 95 corporate solution providers in Bermuda which are licensed under the Corporate Service Providers Business Act 2012. The number has grown in the past few years as the need for expertise in this area has taken a leap.

Corporate solution providers have private companies as well as partnerships and cover a broad spread of business sectors from insurance and funds to offshore energy and shipping as their clients. From blue-chip multinational groups to small, local businesses, they all seek the services of a corporate solution provider to reduce their administrative burden so that they can pay more attention to their core business objectives.

Basics of Real Estate Investment Funds

A real estate investment fund trust is a company that allows investors to put in their money in order to invest in real estate assets. Some real estate investment fund trusts simply buy properties and rent them to tenants and others develop properties from the scratch. In some cases, they don’t even own properties at all and focus on the mortgage and financial aspect of real estate instead.

You can think of a real estate investment fund trust like a mutual fund for real estate. Several investors buy shares and contribute money to a common factor and professional managers take a call on the investment.

Real estate investment fund trust or REITs can be a source of reliable and growing income. As most property-owning REITs lease their properties on a long-term basis, they can be nicely put to play for a stable income. There is definitely far less inconsistency in the quarter-to-quarter profits of well-run REITs than there is for most other companies, including those that are generally thought of as ‘steady’.

Real Estate Investment Funds can also be a clever way to add variation to your investment portfolio. They’re technically stocks, but they represent real estate assets and real estate is generally considered a separate asset that isn’t closely synchronized with the stock market.

By now, the concept of Hedge Fund Administrator, VCC Fund Administrator, Corporate Solutions Provider, and Real Estate Investment Funds would have been quite clear. If you want more information then feel free to get in touch with us and we will gladly assist you in the best way possible.