BISX announces first ICON listing

Tue, Jun 14th 2016, 10:25 AM

The Bahamas International Securities Exchange (BISX) has introduced its first investment condominium (ICON), known as the Star Capital Fund, which is an open-ended investment fund. An open-ended investment is a type of mutual fund that does not limit the amount of shares a fund can issue, and an ICON is established under The Bahamas' Investment Condominium Act, 2014.

The Bahamas Financial Services Board (BFSB) says an ICON may be formed to operate as an open-ended fund in which participants can call for redemption of their interests, or a closed-ended fund in which they may not.

Yesterday, in a press release, BISX announced that voting participation interests in the Star Capital Fund ICON (Star Capital) successfully completed the BISX Listing Process. "As a result, these securities have now been added to the roster of funds listed on the exchange," the statement added.

Colina Financial Advisors Limited (CFAL) securities served as the BISX sponsor member that brought the fund to the exchange. TAG Corporate Services Limited was appointed as the administrator for the fund, and Capital Limited acts in capacity of the investment manager.

BISX Chief Executive Officer Keith Davies welcomed the introduction of Star Capital Fund.

"We are pleased to have listed our very first ICON on BISX. The innovation of the Bahamian financial services sector continues to be demonstrated through the value-added products such as ICONs that are being created," he said.

The press release also provided background information on the new addition to BISX's roster of funds.

"Star Capital is established as an investment condominium under the Investment Condominium Act, 2014 and is registered as a smart fund 007 under the Investment Funds Act, 2003. Star Capital becomes the first investment condominium (ICON) listed on The Bahamas International Securities Exchange," said BISX.

"An ICON is a contractual relationship between one or more participants who have pooled assets for the purposes of operating as an investment fund, and an investment condominium must be licensed as an investment fund under the Investment Funds Act. It is an entity without legal personality but, when represented by its administrator, is able to hold assets in its own name, enter into agreements and sue or be sued in its own name," BISX added.

Xian Smith, Guardian Business Reporter

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