Typically, a Bermuda fund is incorporated as an exempted mutual
fund, formed as an exempted limited partnership or established as a
unit trust. The focus of this article is upon the firs of the
trio.
As with most Bermuda companies, mutual fund companies are
governed, in addition being subject to Bermuda law and regulation,
by the provisions of their bye-laws, which regulate the
relationship of the company, its shareholders and its
directors.
While any investment is a risk and does not guarantee a return,
the purpose of a fund is to generate profit for its investors.
Profit is generally returned to investors in two ways: (i)
dividends and distributions, and, perhaps more commonly in a fund
context, (ii) redemption of shares held by the investor in the
fund.
