CAPITAL CORP. SYDNEY

73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
E: callum.aus@capital.com
P: (02) 8252 5319

WILD KEY CAPITAL

22 Guild Street, NW8 2UP,
LONDON

Contact Person: Matilda O Dunn
E: matilda.uk@capital.com
P: 070 8652 7276

LECHMERE CAPITAL

Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
E: thorsten.bl@capital.com
P: 030 62 91 92

Private label funds

Private label funds

Mutual funds are a collective investment vehicle where a common capital is managed by a professional. However, there is a special category of mutual funds that needs to be treated separately: private label funds.

A private label fund is a tailor-made investment fund, made to meet the exact customer needs (type of fund, legal structures, etc), that bears the name given by the client.

Private label funds (PLFs) are segregated assets and, as well as the commercially funds, they do not pay taxes (stamp duties, VAT).

In fact, private label funds have the same advantages as commercial funds, but they are tailored to meet all the client’s needs.

What do we mean by meeting the client’s needs? They allow complete flexibility in asset allocation, investment strategies, regions, currencies, multi-manager solutions, transactions, pooling, redemption, etc.

Furthermore, the client can select the asset classes.

In practice, the client chooses his preferred actions, and a company provides the administrative services: fund set-up, administration, reporting, compliance, audit, custody, trading, etc.

The main reason to opt for a private label fund is considered security: private label funds are separated assets and off-balance sheet, are regulated investment products and are supervised by the financial market authority.

In terms of transparency, they are cost efficient, safe, audited and provide transparent legal framework with independent reporting.

The process itself it is simple: the client avoids all the hassle with the fund set-up, regulatory framework, audits, NAV calculation, administration, reporting etc.

And, in the end, you have your very own investment product, bearing your name of choice and your very own strategy.

Benefits

The first major benefit when choosing a private label fund is the reduction in management and administration expenses. Plus, possible tax benefits.

In terms of privacy and confidentiality, note the fact that the transactions are done in the name of the fund, not the person, and only the bank who has the units of the PLF in custody knows the beneficial owner.

At any time, you are in full control over the fund and the units of the PLF are highly transferable.