Fund Structure
The fund structure will be comprised of several bodies, namely the Promoter, the Trust, the Board of Trustees, the Investment Committee and the Manager.
The Trust
The Fund will be established as a Trust. This allows it to make investments on behalf its investors prior to acquiring the consent of its trustees. Establishing a fund requires a promoter. The promoter of the Gauteng Fund will be the GPG with Gauteng Provincial Treasury acting as its department of execution.
The Investors
Investors will make contribution to the trust and will, in turn, gain ownership of the trusts investment in proportion to their contribution. Investors will be the sole benefactors of the trust.
The Board of Trustees
The board of trustees will be in charge of administering the affairs of the trust on behalf of its investors. This necessitates that the board carry out functions such as appointing an Investment Committee and making sure that this Committee acts in relation to the laws that govern the trust.
The Investment Committee
The Investment Committee’s responsibility is to ensure that the fund remains operating in accordance with the laws that govern it as a legal entity, to observe the actions of the fund manager and to protect the interests of the funds investors. The investment committee will be in charge of initiating investments and constructing the commitments by which these investments are bound, as well as establishing distribution schedules and exit strategies for all the investments undertaken by the trust.
The Fund Manager
It is the Fund Manager’s responsibility to handle the funds investment portfolio. This requires him to source investment opportunities and recommend these to the Investment Committee; pending their authorization he is required to implement the relevant investments on behalf of the fund. The manager is also to maintain investor relations, keep a close eye on the investment funds at all times and navigate the investments in the interest of the fund and its investors.
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