By Stonebridge Advisors LLP / / 2 min read
Three roles, held apart on purpose
A Category III Alternative Investment Fund is not a single entity that does everything. It is a structure in which different parties hold different responsibilities, and the separation between them is deliberate. For Anchor Rock Investment Fund - I, the parts are the Investment Manager, the Trust and the Fund.
Put simply, the Manager makes the investment decisions, the Trust holds the assets, and the Fund is the pooled vehicle in which eligible investors participate. Each part is described below, followed by the reason the structure is built this way.
The Investment Manager
Stonebridge Advisors LLP is the Sponsor and Investment Manager. It sets the strategy, runs the research, makes the investment decisions and carries the compliance obligation that comes with managing a registered fund.
That makes the Manager the party an investor relies on for judgement. It is also the party that must show, through its records and its reporting, that the judgement was exercised within the rules the Fund operates under.
The Trust
Anchor Rock Investment Trust is the SEBI-registered Category III Alternative Investment Fund under which the scheme is constituted. The registration is held under the SEBI (Alternative Investment Funds) Regulations, 2012.
The Trust sits between the Manager and the investor's money. The Manager decides what to buy and what to sell; the assets themselves are held within the Trust structure rather than on the Manager's own books.
The Fund
Anchor Rock Investment Fund - I is the pooled vehicle. Investors participate by holding units in the Fund, and units are offered only by private placement to eligible investors, under the Private Placement Memorandum.
That point matters for anyone reading about the Fund online. A website, an article or a firm profile can describe the structure, but it cannot be the offer. The offer, and every commercial term attached to it, sits in the Private Placement Memorandum.
Why the separation matters
Keeping the roles apart does two things. It makes responsibility clear, so that it is always possible to say who decided, who holds the assets and who is accountable. It also creates a check, because the party making decisions is not the party holding the assets.
It shapes the questions a careful investor asks as well. Who is the Manager, and who within it makes the decisions? Under which registration does the Trust operate? What do the fund documents say about fees, tenure and investor rights? The first two are answered on this website. The third is answered only in the Private Placement Memorandum.
Where the full terms are set out
Fees, the minimum commitment, the tenure, the distribution waterfall, investor rights and the full risk factors are set out exclusively in the Private Placement Memorandum and the definitive fund documents. Investment in the Fund carries risk, including the possible loss of capital, and there is no assurance of return.
An educational note
This article is published for education and general information. It is not investment, legal or tax advice, and it is not an offer or a solicitation. Units in Anchor Rock Investment Fund - I are offered only by private placement to eligible investors, and the terms of the Fund are set out solely in the Private Placement Memorandum. Read the disclosures.