Question 1

Can we market our existing offshore fund to Australian investors?

Accepted Answer

An existing UCITS, Luxembourg, Cayman or other offshore fund can generally be offered to Australian wholesale and institutional investors without being re-domiciled.The appropriate approach largely depends on the investors being targeted. Institutional investors and family offices are often comfortable investing directly into an offshore vehicle. Platforms and adviser networks are more likely to require, or prefer, an Australian-domiciled structure for tax and compliance simplicity.

Question 2

Do we need to establish an Australian-domiciled fund?

Accepted Answer

Not necessarily.Many offshore managers initially distribute their existing offshore vehicle to local institutional investors.A local unit trust or feeder fund becomes more relevant when your target market includes private-wealth advisers, platforms and other intermediated wholesale investors, for whom familiar tax reporting and administration may be important.Where a local vehicle is appropriate, Sodor Capital can potentially coordinate your fund-formation and launch process and introduce you to quality local legal, tax and operational service providers.

Question 3

Which Australian investors can invest in an offshore fund?

Accepted Answer

Potential investors include superannuation funds, government and sovereign investment entities, insurers, multi-managers, family offices and other wholesale and professional investors.Each market segment has different governance and operational requirements.Asset consultants or local research houses may also influence manager selection or investment via implemented consulting and multi-manager portfolios.Large institutions and family offices are generally the most likely to invest directly into an offshore vehicle or negotiate a segregated mandate or co-investment.

Question 4

Do we need an Australian Financial Services Licence to market a fund in Australia?

Accepted Answer

An Australian Financial Services Licence (AFSL) issued by ASIC is generally required for ongoing marketing activity.If a manager doesn't want to apply for their own licence, they can potentially appoint an Australian AFSL-holding distributor, like Sodor Capital, to conduct agreed local distribution activities within the scope of the distributor’s licence.You should confirm current requirements and the specifics of your situation with your legal advisers.

Question 5

How long does it take to become market-ready in Australia?

Accepted Answer

In our experience, initial scoping to market readiness typically takes one to three months for an established institutional manager where their fund’s strategy and structure are already settled.Formation of a local fund can add three to six months to the launch timetable, depending on product complexity and how quickly the manager’s own approvals can move.

FREQUENTLY ASKED QUESTIONS

IMPORTANT INFORMATION

Launching and distributing in Australia

Can we market our existing offshore fund to Australian investors?

Do we need to establish an Australian-domiciled fund?

Which Australian investors can invest in an offshore fund?

Do we need an Australian Financial Services Licence to market a fund in Australia?

How long does it take to become market-ready in Australia?

FREQUENTLY ASKED QUESTIONS

IMPORTANT INFORMATION​

Launching and distributing in Australia

Can we market our existing offshore fund to Australian investors?

Do we need to establish an Australian-domiciled fund?

Which Australian investors can invest in an offshore fund?

Do we need an Australian Financial Services Licence to market a fund in Australia?

How long does it take to become market-ready in Australia?

IMPORTANT INFORMATION