MyFund Tool Step 1 of 10 - You and how do you invest money? 10% You and how do you invest money?With some simple information regarding your background and plans for your Fund, we can help you tailor the perfect Fund to fit your objectives. We invite you to quickly complete the following questionnaire to help us design your Fund. This questionnaire is designed to make you think about the features that you may need in your Fund structure as well as the ones you don’t want. The questionnaire is divided into seven major headings: (i) How you manage money, (ii) your Business Plan, (iii) the Fund Jurisdiction, (iv) Fees and Share Classes (v) Fund liquidity rules, (vi) Service Providers and (vii) Dealing and Execution. Tell us briefly how you came to managing money, your experience and any other related facts you think relevant?Are you a Singapore citizen or Permanent Resident? Yes No Briefly describe the sector you are managing (e.g. Private Equity, Global Macro hedge fund, long-only fixed income etc)Briefly describe your processDo you borrow money to increase risk exposure? Yes No If so, please give an exampleDo you use derivatives to increase risk exposure? Yes No If so, give an exampleWhat is your long-run target return and risk?Please present your track record if you have one Business PlanThe economics of operating a Fund are simple. Fund expenses are largely fixed costs so that the average cost falls as Assets Under Management (AUM) increase. Fund expenses detract from performance so it is important that you have a business plan to grow AUM to a level at which the costs do not reduce return so much as to turn investors away from your Fund.You and how do you invest money?How much AUM do you expect to seed the Fund at launch?How much AUM do you expect to have at the end of Year 1?How much AUM do you expect to have at the end of Year 3?How many investors do you expect to have at Fund launch?How many investors do you expect at the end of 3 years? JurisdictionThe majority of the world’s Funds are established in the Cayman Islands primarily because it is tax-neutral with respect to all investors. Other jurisdictions such as Luxembourg, Ireland, the British Virgin Islands, the Channel Islands and soon Singapore offer similar tax treatment. The choice of jurisdiction depends on your client base, cost and whether there are any aspects of your investment process that are restricted within a specific jurisdiction. Do you have a preferred jurisdiction? If so where is it and why?Do you intend to source investors from the United States? Yes No Maybe Do you intend to offer the Fund into Europe? Yes No Maybe What is your preferred jurisdiction? (pick 1 for strong preference for s Singapore Fund, 5 for Cayman, and 3 to indicate no preference) 1 2 3 4 5 Fees and Share ClassesWhat fee do you intend to charge investors and in what functional form? The use of share classes to differentiate fees between investors can be very useful. However, too many share classes will add expense to the Fund Administration cost .How much do you intend to charge and in what form? (e.g. 2% base fee and 20% of performance) This will be Share Class APlease list any other Share Classes you wish to propose for the Fund and their differentiating features relative to Class A (e.g. 1% and 20% with 2 year lock-in)Is there a hurdle rate of return that needs to be earned before the performance fee is earned? If so, what is it?Is there a high-water mark below which no performance fees are payable until the portfolio NAV recovers its losses?The equalisation unit calculation is the standard method for charging fees to clients who enter or exit the Fund between performance fee settlement periods. It is also our recommended approach. Do you plan to follow this approach? Or are you looking to use another? Yes Fund liquidity rules for entering and leaving the FundThe nature of the asset class you manage largely drives the liquidity rules that apply. Private assets tend to be locked up for long periods of time while public market investors can offer monthly or even daily liquidity.Do you intend to adopt an open ended or close ended Fund? (Open ended funds expand or contract with subscriptions or redemptions while closed-ended funds do not permit capital changes.) Open Closed Open Ended FundHow frequently can investors trade (eg monthly, quarterly) so that the Fund Administrator needs to fix an NAV?Are there any lockup provisions imposed (e.g. 1 year redemption embargo) or notice periods required before redemption?Are there any redemption fees/penalties and, if so, do they belong to the Fund or the Manager? Fund Manager Can the Fund be reopened at the management’s discretion or with approval of shareholders? Yes No Closed EndedHow long between launch and the close of the Fund (e.g. 6 month subscription period)?When can investors expect to receive their capital plus return back? (e.g. self liquidating upon disposal of assets, the Fund liquidates after 7 years but can be extended by 2 years if the board sees fit or with shareholder majority approval)Can the Fund be reopened at the management’s discretion or with approval of shareholders? Yes No Service ProvidersThere are rules and regulations governing the proper administration of a Fund. For instance, a Fund must have a board of directors, a licenced Fund manager, an independent Fund Administrator, in most cases an Auditor and in some cases a custodian. The Fund must file annual reports with the regulator and, in most cases, must also be formally registered as a public offer vehicle. All these actors combine to give investors the comfort that their interests are being protected, that the Fund is independently and objectively valued. They are also expenses that the Fund needs to bear. * Disclosure: First Degree does NOT receive any commission, payment in kind or incentive from any service provider to the Fund. Our stated fee is the full extent of our earning as the licenced Fund ManagerDo you expect to have more than 15 investors when the Fund is launched? Yes No Do you expect to have more than 50 investors when the Fund is launched? Yes No Do you want to be actively involved in selecting a Fund Administrator or are you prepared to let First Degree source one for you*? prefer to be actively involved prefer to have First Degree to source our Fund Administrator Do you want to be actively involved in selecting an Auditor or are you prepared to let First Degree source one for you*? prefer to be actively involved prefer to have First Degree to source our Auditor Do you want to be actively involved in selecting a Custodian (where needed) or are you prepared to let First Degree source one for you*? prefer to be actively involved prefer to have First Degree to source our Custodian Do you want to be actively involved in selecting a Lawyer (where needed) or are you prepared to let First Degree source one for you*? prefer to be actively involved prefer to have First Degree to source our lawyer Can you nominate two Directors resident in different tax jurisdictions? Would you prefer that First Degree nominate Directors for you*? prefer to be actively Directors prefer to have First Degree to source our Directors Dealing and ExecutionA condition of being the licenced Manager for a fund is that all investment decisions must be made by a designated representative of the licencee. In practice, this means that decisions to buy or sell must be made by employees of First Degree. These decisions can be made with the advice of others or they can be made by the employee themselvesWill you be operating a fund which invests in Private assets for which no broker/dealer is involved? Yes No BrokerHow many broker/dealer relationships do you expect to use?Will you use a Prime Broker? Yes No Maybe Will your broker also provide custody for the assets that you purchase? Yes No Maybe How many individual positions do you intend to hold?What is your annual portfolio turnover?Is it important that you execute yourself? Yes No Δ
