Types of Funds

There are essentially three types of mutual funds which can be established in St. Vincent & the Grenadines:
1. Accredited Funds
2. Private or Accredited Funds
3. Public Funds

"Accredited fund" means a mutual fund

(a) the shares of which are made available only to accredited investors and the initial investment in which, in respect of the majority of such investors, is not less than twenty-five thousand dollars per investor in the United States currency or its equivalent in any other currency; provided, such minimum investment threshold shall not apply in respect of an investment made by the manager, administrator, promoter or underwriter of the fund; or
(b) which is designated as an "accredited fund" by regulations;

"Accredited investor" means a person

(a) whose ordinary business involves, whether for its own account or the accounts of others, the acquisition or disposal of property of the same kind as the property, or a substantial part of the property, of the fund; or
(b) who has signed a declaration that it or he, whether individually or jointly with his spouse (as applicable), has net worth in excess of one million dollars in the United States currency or its equivalent in any other currency and that it or he consents to being treated as an accredited investor;

"Private or accredited fund" means a mutual fund

(a) the constitutional documents of which specify that it will have no more than fifty investors;
(b) the constitutional documents of which specify the making of an invitation to subscribe for or purchase shares issued by the mutual fund is to be made on a private basis, which shall include-
i. an invitation made to specified persons and is not calculated to result in shares becoming available to other persons or to a large number of investors, or
ii. by reason of a private or business connection between the person making the invitation and the investor; or
(c) which is designated as a private or accredited fund by the regulations;

"Public fund" means a mutual fund which is not a private or accredited fund or an accredited fund;