FAQs

An offshore fund is a pooled investment vehicle (such as a unit trust or open-ended investment company) that is established in low-tax jurisdictions like Luxembourg and the Channel Islands.

Yes, investing in an offshore fund does offer tax advantages for certain investors.

Offshore funds are located generally within a tax-neutral jurisdiction and are, therefore, not subject to most (but not all) forms of tax.

  • Investors should be aware that certain income received by the fund from the underlying investments may be subject to withholding taxes.
  • Investors are recommended to seek advice regarding the personal tax liabilities of investing in an offshore fund.

The above is for information purposes only. Please consult your tax advisor for further clarity.

An accredited investor is defined as:

  • An individual with net personal assets exceeding S$2,000,000 in value (or its equivalent in a foreign currency)
  • A corporation with net assets exceeding S$10,000,000 in value (or its equivalent in a foreign currency)

Qualified clients are either individuals or corporations meeting one of the following criteria:

  • A corporation, the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor
  • A trustee of a trust, the sole purpose of which is to hold investments and each beneficiary of which is an individual who is an accredited investor
  • Institutional Investors
  • Executive officer, director or other general partner of the issuer
  • Financial institution
  • Finance company
  • Statutory body
  • Pension fund or collective investment scheme
  • Investment company
  • Insurance company
  • Broker or dealer
  • Business development company
  • Employee benefit plan
  • An entity in which the equity owners are accredited investors

Qualified clients may request access to the EAMS website, but only accredited investors are accepted in ENAM’s offshore fund.

ENAM Asset Management (Singapore) Pte. Ltd. (EAMS) is a Registered Fund Management Company (RFMC) under the revised MAS regulations.

EAMS has well-defined and documented policies and processes for:

  • Key Operating Procedures (Operations Handbook)
  • Risk Management Guidelines
  • Know Your Customer (KYC) Guidelines
  • Internal Controls (Compliance Manual)
  • Business Continuity Planning
  • Personal Trading (Dealing Policy)
  • Internal Audit

These operating procedures have been designed as per the norms laid down by our parent company’s operating policies and principles, which adhere to the guidelines of the Monetary Authority of Singapore.

ENAM’s offshore funds are modeled on the long-only equity strategy of ENAM India Core Equity (ENAM ICE) managed by ENAM Asset Management Company. The funds seek to preserve and grow capital across market cycles and outperform the benchmark index. The funds consist of an underlying portfolio of 15 to 25 high-quality, high-conviction stocks of Indian companies, identified through a rigorous, research-driven investment process. With access to wide research coverage of about 200 stocks, the portfolios are customized according to the specific needs of our clients.

EAMS takes a bottom-up approach to stock selection, with thematic overlays. Investment discipline and risk management are well integrated in our research and investment processes. The investment team adopts a market cap and a sector-agnostic approach to investing. It employs rigorous selection criteria, based on key quantitative and qualitative aspects. We do not take derivatives positions, short sell or leverage positions. The funds are expected to have a portfolio 50% of which is representative of stocks that can be liquidated with minimal impact under normal market conditions.

Our risk management philosophy involves understanding the sources of business, investment and operational risks related to our prospective and current investments and then evolving both qualitative and quantitative aspects of our investment strategy to get desired results. Our risk management process consists of:

Business Risk Mitigation:

  • EAMS appoints independent trustees for the safekeeping of our clients' assets. The clients' assets/funds are directly invested in the fund and/or kept under the custody of a regulated bank or custody agent. EAMS may be appointed as the investment advisor to the funds.
  • Our experienced senior management team is deeply involved in operating and managing investment advisory business
  • EAMS, its subsidiaries and the entire fund structure are covered under the worldwide Professional Indemnity Insurance coverage taken by the parent company in India (ENAM AMC)
  • KYC and DD is performed by EAMS team as well as the fund administrators

Investment and Operational Risk Mitigation:

  • No leverage
  • No short selling
  • Low churn and portfolio turnover
  • No portfolio hedging
  • Strict controls through various exposure limits
  • Client assets are held with regulated agencies
  • Monthly reporting of fund NAV
  • Primarily targeting large institutional and accredited investors
  • All trades are executed on either National Stock Exchange of India (NSE) or Bombay Stock Exchange (BSE). There is negligible settlement and broker risk as the stock exchange and clearing house act as intermediaries for trades executed.

Supervision:

  • Guidelines and support provided by the parent company, ENAM AMC(India)
  • Regular risk review
  • Ongoing counterparty assessment and monitoring of processes
  • Regular interaction between investment and operations team for risk assessment

EAMS strives to deliver transparent investor reporting services and have informative interactions with investors. Our fund administrators e-mail monthly factsheets with NAVs and performance numbers. The latest monthly factsheets and commentaries are also available for download. EAMS also conducts conference calls and personal meetings with investors. Further investment-related queries may be directed to the fund administrators or EAMS.

You may apply for the fund on a monthly basis by filling and submitting the Subscription Agreement. All applications should be directed to the fund administrator at the address given on the Information Memorandum, keeping in mind the deadline for each month.

Redemptions can be made from EAMS funds on monthly basis with a notice of 30 calendar days.

Please contact our team for further information regarding subscription, redemption procedures and timelines.

Our audit frequency is yearly, for each of the funds (31st December), the Investment Advisor (31st March) and the Investment Manager (31st March) by Ernst & Young. The audits are conducted at the respective offices of the fund/manager/advisor and reported to the senior partners of the auditing firms.

FAQs

An offshore fund is a pooled investment vehicle (such as a unit trust or open-ended investment company) that is established in low-tax jurisdictions like Luxembourg and the Channel Islands.

Yes, investing in an offshore fund does offer tax advantages for certain investors.

Offshore funds are located generally within a tax-neutral jurisdiction and are, therefore, not subject to most (but not all) forms of tax.

  • Investors should be aware that certain income received by the fund from the underlying investments may be subject to withholding taxes.
  • Investors are recommended to seek advice regarding the personal tax liabilities of investing in an offshore fund.

The above is for information purposes only. Please consult your tax advisor for further clarity.

An accredited investor is defined as:

  • An individual with net personal assets exceeding S$2,000,000 in value (or its equivalent in a foreign currency)
  • A corporation with net assets exceeding S$10,000,000 in value (or its equivalent in a foreign currency)

Qualified clients are either individuals or corporations meeting one of the following criteria:

  • A corporation, the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor
  • A trustee of a trust, the sole purpose of which is to hold investments and each beneficiary of which is an individual who is an accredited investor
  • Institutional Investors
  • Executive officer, director or other general partner of the issuer
  • Financial institution
  • Finance company
  • Statutory body
  • Pension fund or collective investment scheme
  • Investment company
  • Insurance company
  • Broker or dealer
  • Business development company
  • Employee benefit plan
  • An entity in which the equity owners are accredited investors

Qualified clients may request access to the EAMS website, but only accredited investors are accepted in ENAM’s offshore fund.

ENAM Asset Management (Singapore) Pte. Ltd. (EAMS) is a Registered Fund Management Company (RFMC) under the revised MAS regulations.

EAMS has well-defined and documented policies and processes for:

  • Key Operating Procedures (Operations Handbook)
  • Risk Management Guidelines
  • Know Your Customer (KYC) Guidelines
  • Internal Controls (Compliance Manual)
  • Business Continuity Planning
  • Personal Trading (Dealing Policy)
  • Internal Audit

These operating procedures have been designed as per the norms laid down by our parent company’s operating policies and principles, which adhere to the guidelines of the Monetary Authority of Singapore.

ENAM’s offshore funds are modeled on the long-only equity strategy of ENAM India Core Equity (ENAM ICE) managed by ENAM Asset Management Company. The funds seek to preserve and grow capital across market cycles and outperform the benchmark index. The funds consist of an underlying portfolio of 15 to 25 high-quality, high-conviction stocks of Indian companies, identified through a rigorous, research-driven investment process. With access to wide research coverage of about 200 stocks, the portfolios are customized according to the specific needs of our clients.

EAMS takes a bottom-up approach to stock selection, with thematic overlays. Investment discipline and risk management are well integrated in our research and investment processes. The investment team adopts a market cap and a sector-agnostic approach to investing. It employs rigorous selection criteria, based on key quantitative and qualitative aspects. We do not take derivatives positions, short sell or leverage positions. The funds are expected to have a portfolio 50% of which is representative of stocks that can be liquidated with minimal impact under normal market conditions.

Our risk management philosophy involves understanding the sources of business, investment and operational risks related to our prospective and current investments and then evolving both qualitative and quantitative aspects of our investment strategy to get desired results. Our risk management process consists of:

Business Risk Mitigation:

  • EAMS appoints independent trustees for the safekeeping of our clients' assets. The clients' assets/funds are directly invested in the fund and/or kept under the custody of a regulated bank or custody agent. EAMS may be appointed as the investment advisor to the funds.
  • Our experienced senior management team is deeply involved in operating and managing investment advisory business
  • EAMS, its subsidiaries and the entire fund structure are covered under the worldwide Professional Indemnity Insurance coverage taken by the parent company in India (ENAM AMC)
  • KYC and DD is performed by EAMS team as well as the fund administrators

Investment and Operational Risk Mitigation:

  • No leverage
  • No short selling
  • Low churn and portfolio turnover
  • No portfolio hedging
  • Strict controls through various exposure limits
  • Client assets are held with regulated agencies
  • Monthly reporting of fund NAV
  • Primarily targeting large institutional and accredited investors
  • All trades are executed on either National Stock Exchange of India (NSE) or Bombay Stock Exchange (BSE). There is negligible settlement and broker risk as the stock exchange and clearing house act as intermediaries for trades executed.

Supervision:

  • Guidelines and support provided by the parent company, ENAM AMC(India)
  • Regular risk review
  • Ongoing counterparty assessment and monitoring of processes
  • Regular interaction between investment and operations team for risk assessment

EAMS strives to deliver transparent investor reporting services and have informative interactions with investors. Our fund administrators e-mail monthly factsheets with NAVs and performance numbers. The latest monthly factsheets and commentaries are also available for download. EAMS also conducts conference calls and personal meetings with investors. Further investment-related queries may be directed to the fund administrators or EAMS.

You may apply for the fund on a monthly basis by filling and submitting the Subscription Agreement. All applications should be directed to the fund administrator at the address given on the Information Memorandum, keeping in mind the deadline for each month.

Redemptions can be made from EAMS funds on monthly basis with a notice of 30 calendar days.

Please contact our team for further information regarding subscription, redemption procedures and timelines.

Our audit frequency is yearly, for each of the funds (31st December), the Investment Advisor (31st March) and the Investment Manager (31st March) by Ernst & Young. The audits are conducted at the respective offices of the fund/manager/advisor and reported to the senior partners of the auditing firms.