A regulated structure for collective investment schemes offering diversified international investment exposure.
LABUAN MUTUAL FUND COMPANY
A Labuan fund is a collective investment scheme established under the Labuan Financial Services and Securities Act 2010 (LFSSA) for the purpose of pooling capital from investors to be professionally managed and invested.
1. Private Fund: Offered to a restricted group of investors (not more than 50 investors or exclusively high-net-worth individuals/institutions), requires a minimum investment per investor.
2. Public Fund: Offered to the general public, requiring approval of a full prospectus by Labuan FSA before marketing.
The purpose of these funds is to provide a regulated vehicle for investors to participate in collective investment opportunities, diversify portfolios, and benefit from professional fund management.
BENEFITS
Tax Efficiency : – Fund companies enjoy Labuan’s low tax regime (3% on audited net profits subject to fulfilment of the substance requirements.)
Flexible Structure : – Funds may be set up as a Labuan company, partnership, protected cell company (PCC), or trust.
Global Reach : – Funds can be marketed internationally, subject to relevant approvals.
Investor Protection : – Regulated by Labuan FSA, ensuring compliance and oversight.
Cost-Effective Jurisdiction : – Lower setup and operational costs compared to many other offshore fund jurisdictions.
SAMPLE USE CASE
A wealth management group establishes a Labuan private equity fund as a private fund structure, pooling capital from 20 high-net-worth investors in Malaysia, Singapore, and the Middle East. The fund invests in Southeast Asian tech startups, with oversight from a Labuan-licensed fund manager.
For a public fund, an asset management company could launch a Labuan mutual fund open to retail investors globally, providing access to diversified investments under a regulated and tax-efficient structure.
Head Office
Unit Level 11(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 FT Labuan, Malaysia
Marketing Office
19A-25-1, Business Suite, UOA Centre, No.19, Jalan Pinang, 50450 FT Kuala Lumpur, Malaysia
