Amicorp enables clients to invest worldwide in an efficient manner. Amicorp utilizes a fund administrator located in Chile, whose objective it is to provide superior absolute returns and a tailor made investment strategy directly linked to the risk aversion and the investment experience of its clients. Amicorp is responsible for the structure of the Private Investment Fund, whilst the investment is determined by the external fund administrator. (Amicorp does not provide investment advice).
The private placement memorandum of the fund, according to its specially agreed investment strategy, allows the fund to invest in a variety of assets and financial instruments, including equities, bonds and derivative instruments including credit derivatives, options and futures, swap contracts, forward contracts, currencies and currency forward contracts, repurchase agreements, as well as listed and over-the-counter options and shares in other investment vehicles and unlisted companies.
Implementation and Administration
The steps for the implementation of the Chilean Private Investment Fund (“FIP”) are as follows:
- Once the FIP is formed through the execution of the Private Placement Memorandum (“PPM”) the FIP has to apply for a tax ID in Chile, which will be arranged by Amicorp.
- Once the FIP has the tax ID the FIP will be able to open an investment account / bank account.
- It will be necessary to obtain a Chilean tax ID for each and every investor (quota holder). In order to obtain a tax ID for the quota holder a Power of Attorney (“POA”) should be issued together with a copy of the quota holder´s passport which is then legalized at the Chilean consulate.
- Once funds are invested in the FIP, each investor will be receiving quotas in USD (or any other currency) according to the amount invested (the value of each quota will be determined in the PPM of the FIP).
- The Fund administrator is obliged by law to register each investment made with the Servicio de Impuesto Interno (“SII”, the Chilean tax authorities) in Chile and with the Chilean Central Bank via Cap.14 (http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXIV.pdf).
- The Fund administrator then informs SII and the Central Bank in Chile (via Cap. 12 (http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXII.pdf) that the FIP will be investing in USD outside of Chile.
The information regarding investment objectives, risks, charges, expenses, etc. is provided in the PPM, which must be read and considered carefully before investing. Investments managed by the FIP are not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency and the quotas have not been and will not be registered under any Securities Act or any state securities laws.
The FIP can issue a POA to invest the funds if the investment manager deems this to be appropriate. The POA will be limited to the extent that the attorney-in-fact will not be allowed to make transfers to persons other than the quota holder. Since the investment manager will be audited, no funds will be transferred to a third party without the FIP’s explicit consent.
For substance reasons it is recommended that approximately 10% of the invested funds remain in Chile. These funds will be invested in a USD bond with a maturity of 120 days that can be renewed on maturity and can be used for instance for payment of the annual fees for maintaining the structure
The FIP is set up to (i) invest in all kind of securities, corporate rights, credit titles (i.e. loans) and (ii) manage a Chilean company (i.e. Sociedad Anonima) on behalf of its investors, which contributes to the net asset value (“NAV”) of the fund. The investors can be individuals and legal entities, Chilean or foreign.
Under Chilean law, the fund is a private entity without any legal personality, which does not require any preliminary approval of the local authorities in order to carry out the activities. The fund is regulated only by an internal regulation provided by the investors. Despite the absence of legal personality, the FIP is obliged to be included in the Chilean Tax database and, according to certain decisions, is considered subject to tax.
Our services include the full implementation and administration of the FIP. The set-up of a FIP consists of the preparation of the PPM and the subscription agreement, the NAV calculation and the completion of financials and any other relevant report to comply with the applicable laws in Chile.
The FIP is structured based on the collective objective of a potential group of investors interested in a certain economic sector or special portfolio investments. The objective of the FIP can vary from a diversified financial portfolio to specific private equity projects. Once the objectives are clearly defined, we will start the coordination of the investments process, which in some circumstances may require the appointment of third party advisors specialized in determined investments areas.
We establish a close relationship with each investor to achieve high standards of client satisfaction and corporate governance. For this purpose we have developed investment control reports in order to benchmark the achievements with the initial targets, making sure that special measures will be taken to improve the investment strategy if deemed necessary.
- Managed by an Amicorp preferred provider.
- The number of quota holders can vary from 1 to 49.
- The preferred provider is not allowed to offer the fund publicly.
- The FIP is not regulated by the local authorities in Chile.
- The investors must be registered with the SII (Chilean tax authorities).
- Offshore and onshore investments are allowed.
- The quota holders may be residents in Chile or non-residents.
- The FIP may have a sole investment such as a participation in a SPV.
- The FIP must prepare financials and be audited at least once a year.
- The NAV will be provided to the investors periodically as is indicated in the PPM.
- The FIP may open an account in Chile and offshore in USD or in any other currency in order to receive the contributions from the quota holders.
- As an alternative, the funds contributed by the investors can be transferred to Delta´s account in Chile, which in turn would transfer said funds to the FIP.
Foreign Client Applications
- Chile is a politically stable country and is very attractive country for foreign investors as Chile does not qualify as a low tax jurisdiction.
- Chile has a modern infrastructure.
- Chile has a well-developed investment market.
- Chile is member of various international organizations, such as the OECD and FATF; and
- Chile has a network of double taxation and bilateral investment protection treaties.
- Foreign clients will be exempt from paying any tax in Chile.