Models of inflow (just trust and foundation)
Basic Model – Liquid Assets
Each cell can only be owned by a single bank account. This is due to the unique structure that the CGAAF recognizes and sees the bank account as the legal owner of the cells (and therefore the monies and securities contained within). The investor is not expose under the fund structure. Accordingly, where a single investor wishes to use a different bank account to deposit monies into the respective cell, he will need to either transfer the monies to the bank account in which the CGAAF units are held and do the deposit, or transfer the CGAAF units from the existing bank account to another bank account which he uses. Please note that transfer of the units to another bank account might entail the need to repeat the due diligence process as that is essentially a change of ownership.
The enhanced model follows the same rules as the basic model. However, for added confidentiality and/or separation of the assets and ownership, the investor may choose to put the monies into a trust or a foundation. In turn, this foundation/trust will set up bank account(s) which will be held in the foundation/trust name and invest the monies into CGAAF.
Illiquid Assets Model - Simplified
*Please note that all inflow of illiquid assets are subject to approval and checks. Where illiquid assets are concerned, Special Investment Units will be issued in place of normal units. Such units are only redeemable at the discretion of the Fund and after the Realization Event, as per the Private Placement Memorandum.
In the case where the investor wishes to use the value of illiquid assets to consolidate under the CGAAF, it would be arranged to have the illiquid assets placed in a PIC to facilitate the inflow. In this example, a real estate is used but the CGAAF may accept any other illiquid assets. In this case, the investor will have a bank account that owns the cell. Using the same bank account, the investor may inflow the shares of the PIC (carrying the value of the real estate) into the cell in return for units into the bank account.
This model, however, does not take into consideration confidentiality and privacy requirements. The PIC can be owned by the investor, in which case, the shares, despite being under CGAAF, can still be traced to the investor.
Illiquid Assets Model - Full
As above, this models deals with illiquid assets but provides a better confidentiality option for investors who are concern about privacy issues.
The investor can put the illiquid asset under a PIC and put the shares under a PPLI of our partner. As mentioned above, the PPLI is now the owner of the shares, hence, the beneficial owner of the property under the PIC. It follows that the PPLI will open and own the bank account which will in turn be seen as the owner of the cell under the CGAAF.
The shares held by the PPLI can also be inflow (subject to approval) into the cell, under CGAAF to be managed as a consolidated platform.
Possible co-investment models
Joint Account – Single bank account with joint names
This model is suitable for investors who are related and wish to co-own the investment in CGAAF. From CGAAF’s perspective, the owner of the units is the bank account (which is being held in the joint names of the 2 investors). Depending on the investors agreement with the bank (of the bank account), the investors can be equal owners of the interests in the bank account. This means that whatever value is equally divided among the investors. There can also be instructions given that the bank account can only be operated on unanimous decisions only.
This model is best suited for investors who are business partners or non-related individuals. As shareholders of the company, the investors will receive shares of the company proportionate to their investment (monies and/or securities). These investments will become the paid up capital of the company which will be injected into the bank account of the company. Thereafter, the company, by agreement, may invest into the CGAAF using the investments put in by the various investors. This models gives more assurance and accountability compared to just a basic joint account.
Fund Manager Model
This model involves a fund manager which controls and operates on behalf of the investors. Usually, this model will be applicable for a group of unrelated clients of a Fund Manager who wish to consolidate his clients’ and invest within a single structure. Hence, the investors will pool their monies to the Fund Manager who will deposit that monies into a bank account and buy into the CGAAF. Such arrangements are between the investors and the fund manager and it is up to the parties to agree on the terms of investment. CGAAF will not guarantee or take any responsibility for the actions of the fund manager. The fund manager can be a corporate entity or an individual.
The final model is an amalgamation of the above models. The investors may decide to come together and link their respective bank accounts to a single account which is owned by an entity held in their joint names (in the case of trust, they can be the beneficiaries). Accordingly, the entity will act on the behalf of these investors and invest into CGAAF through its own bank account. The investors can link or transfer monies from their bank account to the entity’s bank account. Similarly, the arrangement and terms is completely up to the investors and CGAAF will not take any responsibility or guarantee anything beyond its scope.
Possible Investment into Real Assets – Singapore based real assets preferred