Investment Funds

Efficient centralized management of wealthy family assets can be ensured by using investment fund. These are investments meeting high responsibility standards.

Investment fund is a form of collective investment activities, under which some investors perform investments in various financial instruments – bonds, money market funds, stocks, deposits, etc.

You can use investment funds for efficient centralized management of the family assets or funds transferred to you by private investors.

Moreover, under specific limitations, an investment fund can raise funds from external investors. Consequently, in most jurisdictions investment fund activities are regulated by state authorities, e.g. Securities and Stock Market Commission. This gives investors confidence in their right to invested funds and ensures current information on actual value of investments.

To establish and run an investment fund, substantial time and money are needed, price of establishing investment fund is several times higher than that of establishing a non-resident company.

Investment fund allows establishing subfunds having their own investment strategy, own rules of control and decision making. Such differentiation is useful when investing in several asset categories: securities investments require prompt response and usually are performed by investment manager itself, whereas in case of investments in private companies or real estate family members can control every transaction.

Usually, for running an investment fund, the following parties are required:

Party Functions
Investors Establish the investment fund, provide initial investment capital, deposit or withdraw funds.
Fund management Controls investment activities. The fund management includes family members that are ready to undertake control functions.
Investment manager Performs necessary investment activities within the investment strategy agreed upon with the investors. Under funds established by us, investment activities are performed by our affiliate company ABLV Asset Management.
Custodian bank Responsible for control and administration of assets. Under funds established by us, the role of custodian is performed by ABLV Bank or another bank that we have corresponding partner relationship with.
Central agent Calculates value of fund shares and maintains register of investors.

Main principles of investment fund operations

  • Centralized management
    Non-split management of family wealth despite large (or increasing) number of beneficiaries.
  • Control
    Investment and management decisions can be taken by family members; it is possible to develop tailored and specific rules of controlling all aspects of fund’s operations.
  • Confidentiality
    Usually, fund beneficiaries need not be disclosed when depositing funds or purchasing assets.
  • Safety
    Individual rules of purchasing and selling fund shares, as well as central licensed register of investors; administrative fund management performed by a licensed professional.
  • Profitability
    Possibility to invest in assets that are available to institutional or professional investors only.
  • Teaching family values
    Involving immediate family in managing family assets following set rules.

Besides advice on investment activities, registration and administration of investment funds, we are also ready to assist you in establishing charitable foundations and provide you payment administration services.