In August 2012 the Securities Commission of The Bahamas (the
"Commission") approved a new SMART fund model, increasing
the total number of approved SMART fund models to seven.
What is a SMART fund?
"SMART" is an acronym for Specific Mandate Alternative
Regulatory Test fund. As investment needs may vary from client to
client, SMART funds provide the option for promoters to tailor-make
an investment vehicle. This allows promoters or clients with unique
investment ideas to create a fund model which can be submitted to
the Commission for approval. However, promoters are free to
structure their funds based on the models already approved. The
Bahamas introduced the SMART fund concept in 2003, with the
enactment of the Investment Funds Act, 2003. The SMART fund concept
has proven to be a unique twist on the traditional way of
structuring funds.
