Institutional Funds
In Bermuda, institutional funds have specific requirements that need to be fulfilled. These include:
- Targeted Investors: Institutional funds in Bermuda are primarily targeted at institutional or sophisticated investors. This categorization implies that the fund is aimed at investors who possess the experience, expertise, and financial resources to make informed investment decisions.
- Investment Minimum: To participate in an institutional fund, investors are typically required to make a minimum investment of US$100,000. This threshold is set to ensure that the investors have a significant stake in the fund and are likely to be more knowledgeable or experienced in investment matters.
- Local Representation: An institutional fund is required to have an officer, trustee, or resident representative based in Bermuda. This individual must have access to the books and records of the fund. The presence of a local representative ensures a point of contact within Bermuda’s jurisdiction and aids in compliance with local regulations and oversight.
These requirements reflect the Bermuda Monetary Authority’s (BMA) approach to regulating institutional funds, focusing on investor protection and ensuring that these funds are managed and operated in a transparent and responsible manner.