A mutual fund is a form commonly used in the Netherlands. It is not a legal entity but, in fact, an agreement between three parties. A fund manager, a foundation and participants. The participants deposit their money in an account managed by a foundation (foundation board). The foundation is the legal owner of the fund. The management is carried out by the fund manager who is responsible for the investment policy.
The Brouwers Fund is using the services of AMS financial group (AMS), an international organisation based in Amsterdam. AMS is the board of directors of the foundation, which is legally owned by the Brouwers Fund. AMS has been granted a specific licence and is supervised by De Nederlandsche Bank (DNB). The funds of the participants are therefore in trusted professional hands. In addition, the Brouwers Fund makes use of the services of Circle Partners, based in Amersfoort. This is an international organisation that will take care of the Fund and participant administration for the Brouwers Fund. Circle Partners takes care of the fund administration for more than 300 investment funds with total assets under management of more than 10 billion euros.
The fund is registered in the AIFMD register with the AFM. There are certain restrictions to which the fund must adhere, including a minimum participation size. The fund is not licensed by the AFM.
Costs and conditions
Based on the restrictions that apply to the Brouwers fund, a minimum entry amount of €100,000 applies. The cost structure for participation consists of four parts: the entry and exit costs, a fixed fee and a performance fee. The information memorandum carefully describes all costs charged to the fund.
Entry and exit charges
On entry and exit, a fee of 1% of the original invested capital will be charged for administration costs, overhead and suchlike. If you have been participating for more than three years, no exit fee will be charged.
The fixed remuneration amounts to 1% per annum on the assets under management measured in terms of NAV (Net Asset Value). This is charged to cover the fixed costs of the Fund Manager’s organisation, the costs of the Fund Administrator and the Board of Trustees of the Foundation. This fee can be taken up in twelve equal instalments and is calculated by taking the NAV at the end of the calendar month as a starting point. The NAV is calculated monthly by the fund administrator.
Transaction costs are charged separately to the assets and liquidity of the fund. This includes (i) brokerage fees (ii) custody/custodian costs (iii) derivatives reporting and trade repos itories (EMIR regulation) and related costs.
We apply a performance fee based on a high watermark. Only when the fund’s assets reach a new highest level do we charge a performance fee. The performance fee is based on the 80/20 split. This means that 80% of each percentage return is for the participant and 20% for the fund manager. This is based on the High-Watermark principle.
We would like to give you more information about our fund and would be delighted to meet you. You may also like to know who we are and what we stand for. That is why we would like to invite you for an informative meeting at our office at Beursplein 5 in Amsterdam, without any obligation.
We think it is important that you understand what happens to your assets when we invest them. After all, you want return, but you also want peace of mind. When you have a better understanding of how we achieve the return, you will have peace of mind. The expectations must be clear and realistic.
An information memorandum is available describing all matters relating to the fund, including investment policy, risks and costs. In addition, there is a legal obligation for the fund manager to prepare an Essential Investment Document for potentially interested participants. We request that you read both documents carefully before considering participation in the fund.