A. Alternative Investor Funds and Professional Investor Funds (PIFs)

PIFs have been extensively used for investment in non-traditional investments and/or specialist instruments including by way of example, private equity, derivatives, immovable property / real estate, and traded endowment plans.

Alternative Investor Funds and Professional Investor Fund are a type of collective investment scheme intended for a specific category of high net worth investor who can meet certain minimum investment requirements. The licensing and supervision of AIFs/PIFs is carried out by the Malta Financial Services Authority (MFSA). Since they can only be offered to investors who have adequate expertise, experience, and knowledge to understand the risks involved, AIFs/PIFs are regulated in a more lenient manner and are not subject to the same investment restrictions as retail funds. This enables AIFs/PIFs to adopt innovative or unorthodox investment strategies.

Phoenix currently operates an Alternative Investment Fund in a SICAV format. The AIF can invest in any type of securities, real estate, property, funds, infrastructure project, cash, Forex, shares, or other equity opportunities; however, if the AIF obtains leverage, funds cannot be loaned to another entity, and in some cases provide mezzanine financing.

A Depositary Bank is required for supervision of assets and safekeeping. The Depository or Custodian Bank will hold investment capital brought into the fund as well as carry out due diligence on the receiver or investments by the fund. Each sub-fund will have its own account with the Custodian with terms subject to the sub-fund’s investment policy.

The senior management members of an AIF umbrella fund or sub-fund will need to meet specific conditions including background checks and completing fit and proper requirements. They must justify their good reputation and character, and have sufficient professional experience, as well as prove they have not conducted activities the MFSA would deem irresponsible or immoral.

An AIF can be set up as a SICAV, INVCO, a public limited company, a limited partnership, or a unit trust, and can be constituted as an umbrella fund or a multi-class fund. The licensing process and ongoing compliance obligations will vary per the category of target investors.

Where an AIF has adequate resources and arrangements to safeguard the interests of investors, it is possible for it to be self-managed and self-administered without appointing an external investment manager, thus reducing costs. Moreover, service providers appointed by an AIF need not be established in Malta with the exception of the Custodian, thus the promoters of an AIF set up in Malta may continue to make use of the services of foreign service providers whom they trust and have engaged in the past.

Regulatory costs are less cost prohibitive when compared to other jurisdictions, and AIFs may benefit from the favourable fiscal framework in Malta, as well as from several double tax treaties based on the OECD model, which Malta has entered into with over 60 countries. The tax treatment of AIFs set up in Malta will vary depending on whether the AIF is classified as a prescribed or non-prescribed fund. A prescribed fund is one whose value of assets situated in Malta is at least 85% of the total value of its assets. No withholding tax applies when investment income is received by non-prescribed funds, other than income from immovable property situated in Malta, whilst the local investment income derived by a prescribed fund will be subject to a final withholding tax ranging from 10% to 15%.

The distribution of dividends to, or the redemption of units in the AIF by, a non-resident investor is exempt from tax, and no Malta VAT is chargeable to investors on subscription to shares or units in the fund.

The Maltese regulator, MFSA, adopts a flexible approach to new business proposals and is keen to promote Malta as an attractive jurisdiction for new products in the industry by addressing the needs of promoters and investors in an appropriate and efficient manner.

The cost to establish a sub fund is either 125,000 or 250,000 Euros depending on the type of fund. This one-time expense includes all cost until the fund is operational. There are some required annual fees when management of the fund is involved. The MFSA does charge some minor annual fees which are included in the management fees.

The challenge for many companies has been identifying an opportunity in which ownership dilution is not involved in the equation—until now. Phoenix’s offers its clients an alternative investment solution that helps you grow your business, maintain ownership, and pursue the opportunities you see. The availability, ease of use, tax benefits, and regulation framework make Malta, and PIFs, an ideal environment and the perfect tools with which to grow or expand your business.

B. PRIVATE WEALTH MANAGMENT

Our Wealth Management services are available to any of our clients or as a separate service. Our advisory role and services typically offered with private wealth management include:

• Investment advisory
• Money management
• Wealth planning
• First priority product offerings
• Private Wealth Management is frequently part of the 'Private Bank' sector of a bank.
• Asset Management
• Investment Banking
• Private Banking including corporate structuring, foundations, or trusts
• Fundraising
• Trading

These services and our advisory role may be conducted by our third party partners when necessary. We intend to find the best possible solution to needs and strategies. Regardless, your contact and administration will remain with Phoenix.

C. RELATED SERVICES

Electronic Banking Services
Our Electronic services include online banking in full compliance. These broad services are intended to compliment any financial structures or strategies set in our advisory role. They include banking software, payment systems, payroll services, and all card related services.

Forex
While our card services include currency exchange for those who require currency exchange for large transactions we do have a separate service.