ARTICLE · 18 OCTOBER 2010

Segregated Portfolio Companies as Mutual Funds

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The laws of each of the British Virgin Islands (BVI) and the Cayman Islands permit, within a single company, the segregation of assets and liabilities amongst various "portfolios" in a way which binds third parties as a matter of the respective laws.

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Kate Kirk

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Segregated Portfolio Companies as Mutual Funds

Introduction

The laws of each of the British Virgin Islands (BVI) and the Cayman Islands permit, within a single company, the segregation of assets and liabilities amongst various "portfolios" in a way which binds third parties as a matter of the respective laws.

Notwithstanding the segregation of assets and liabilities within portfolios, the Segregated Portfolio Company ("SPC") is a single legal entity and any segregated portfolio of, or within, an SPC does not constitute a legal entity separate from the SPC itself. This means, for example, that a portfolio cannot buy shares in another portfolio except through a third party.

Why choose an SPC?

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