Frequently Asked Questions

What is a hedge fund?
A hedge fund is a term loosely applied to a number of categories of alternative investments. Traditionally, a hedge fund was so-called due to its controlled structure, in which certain types of investments were offset by countervailing portfolio positions to protect the portfolio (and therefore the investor) against market downturns, failures in corporate expectations, or other reversals in asset value. The term has over the past decade taken on broadened scope as investment managers pursue different avenues in constructing alternative investment policies.

What makes a hedge fund important?
The purpose of the hedge fund is to act as an integral part of an investor’s overall portfolio. Because hedge funds are – or should be – insulated from the regular investment markets due to their hedged strategies, the investment performance should be decorrelated, or in some manner have a predictable correlation, to a greater asset class (usually represented by such proxies as the MSCI World Index, the S&P 500 Composite Index or the DJIA). Statistical processes can then be used to construct a portfolio maximizing risk-adjusted return, particularly through powerful statistical tools newly available to investors.

What is the role of a fund administrator?
A fund administrator serves a number of integral purposes for managers and investors alike. Although the primary role is to facilitate the relationships between managers and investors, fund administrators also provide marketing, accounting, analysis, back-office and distributions functions for the managers. This includes, but is not limited to, NAV calculations (weekly, monthly, etc.), document preparation, interfaces with data service providers and production of regular marketing reports. Investors, in turn, receive reports on their personal holdings directly from the fund administrator, who is also responsible for executing subscriptions and redemptions. Having a fund administrator assume these responsibilities helps to ensure accuracy and efficiency.

What types of funds does Fund$Fund administer?
Fund$Fund has extensive experience with a plethora of funds, including: balanced funds, emerging market funds, fixed income funds, funds of funds, futures funds, global equity funds, hedge funds, leveraged funds, multi-advisor funds and US equity funds.

In which non-US domiciles is Fund$Fund qualified to administer funds?

We have the rights to administer funds domiciled in Dominca, Ireland, Bermuda, B.V.I., Cayman Islands, Bahamas and many else.

Is Fund$Fund affiliated with any trust companies?
Yes, Fund$Fund has a close working relationship with Offshore Trust Companies. Trust Companies Limited is a Dominica or Panama-residents, licensed trust companies which works with individuals and professional advisors to determine trust objectives and create the most effective trust structures. Fiduciary services include serving as a registrar and transfer agent, along with the incorporation and maintenance of management companies and corporate accounts.

What type of information is made available to the eligible investor by the Fund$Fund website?

Once it has been determined the investor is eligible, the relevant funds’ offering documents and a wide variety of marketing materials, including historical fund performance, may be made available.

What information will be available to the Fund$Fund Investor after they have entered a user name and password?

The Fund$Fund Investor will be able to access a summary of their holdings as well as the transaction history for the offshore fund or funds in which they have invested. The summary of holdings will include the data they currently receive in their official mailed account statement. Namely, it will show for each fund that the investor owns: the number of shares owned at a defined valuation date, the NAV at that valuation date, and the total account value at that date. Effectively then, the Fund$Fund Investor will be able to view a combined statement for all Fund$Fund administered offshore funds owned. When utilizing this feature, the summary of holdings will default to today’s date. However, the Fund$Fund Investor can enter in the desired date, and holdings will then be summarized for the valuation date closest to that date. In the transaction history portion of the site, they may enter the start and end dates for which they would like to see the transaction history on a fund- by- fund basis. The transaction history would include, if applicable, subscription and redemption information, dividends, equalization debits and credits, and transfers.

How can the Fund$Fund registered investor be certain any information which is transmitted via the website is secure?

There are a number of controls that have been placed on the site to ensure security. First, the username and password of the Fund$Fund Investor are chosen by that party and will be known only by that party. If this information is forgotten, misplaced or lost, Fund$Fund will mail another temporary set to Fund$Fund Investor at their address on file, which must again be changed. Additionally, all information is processed through a secure server. In addition, the account information provided, does not list the Fund$Fund Investor’s address or name, only their account number. In this way if an authorized party for the Fund$Fund Investor accesses the account and walks away from the computer, a third party would not be able to identify the owner of the account.

Also, please note that this is not a transactional website. Subscriptions and redemptions into funds must follow the procedures established in the relevant offering documents and subscription agreements for the funds.

What security measures are taken to protect the Fund$Fund website?

Security is a priority at Fund$Fund. We are committed to protecting the security and confidentiality of your information. We use a combination of state-of-the-art technology and operating procedures to help ensure that your online sessions are secure.

In simple terms, our internet security measures are designed so that any personal information you send us is scrambled. Our site utilizes 128-bit (which is the most powerful available) electronic certificate through VERISIGN (for more information, please visit www.verisign.com). This technology, called Secure Socket Layers (SSL), protects information you submit or receive through this site. Fund$Fund also uses firewalls to help limit entry by anyone without proper authorization. A firewall is a security mechanism that regulates the data going in and out of a network.

What are the plans for the future of the Fund$Fund website?

The present state of the site allows Fund$Fund Investors to access statements for offshore funds in which they have invested. In the near future, we intend to have direct links to investment manager’s sites, and other service providers such as lawyers and auditors when appropriate and permitted by desired by the service provider.