Around the world, most banks and financial institutions are faced with increasing regulatory burdens and higher costs.  Consequently, many are simultaneously increasing fees, downsizing their commitment to private wealth through separating investment decisions from relationship management. This encouraged KDT to act as an independent investment advisor, to create the opportunity to offer quality banking and investment support service at a modest cost.

Mauritius is strategically located at the cross-roads of emerging Africa and Asia and has traditionally been a centre of trade with Europe too.  Modern communications and good technology allow KDT to function efficiently in a supportive labour and regulatory environment.  This all adds up to a very positive environment for business and when you include the very comfortable and pleasant lifestyle for families too, it was an easy decision.

Your bank / broker account always remains in your name or your company name and you always have the authority to give instructions on the account.  In the event of KDT being acquired, you may decide to meet the new owners before making any decision to continue the relationship.  In the event of KDT going public, this may be a sign of success which signals continuation of a good relationship.  In the event of KDT going out of business, you would immediately cancel the “Investment Advisor” agreement with KDT and then you or your authorized corporate signatory take over total management of the account.

If you are an individual or trustee who manages or is responsible for several different bank accounts and investment portfolios, it may be very difficult to keep track and have a comparative analysis.  KDT offers a Financial Planning arrangement that will help you to achieve this for an agreed fee.

Regulatory guidelines in the Financial Services industry do not allow this type of “marketing” and also importantly we believe our clients’ recommendations should remain private and confidential.

1. All client assets are held directly with the bank or broker. KDT’s ongoing role is limited to the buying and selling of securities on the account, as well as administrative support to the custodian for account opening and maintenance requirements.
2. Unless specifically requested, no margin or re-hypothecation agreements are signed which avoids the risk of your assets being subject to creditor litigation.
3. Any payments or transfer of securities out of the account are verified by the custodian which may include written instructions and/or a recorded phone call authorisation.
4. Our partner banks and brokers have insurance protections to protect your assets in the unlikely event of the bank or broker bankruptcy.

KDT currently supports all types of bank, broker or investment accounts in individual or joint names, personal holding companies, trusts, foundations, stiftungs etc.  Accounts may be held in Zurich, New York, Jersey, Guernsey or elsewhere.

Any individual aged 18 or over,  or two persons jointly, or authorised signatories of a Trust, Company, Foundation etc may open an account.

No, a name change is not permitted.  However, you will have been approved by the bank as a client with whom they want to do business, so this will usually speed up the process of setting up a new account in joint names or in the name of the company name as required.

You can either retain your existing bank or investment broker or open an account with either of KDT’s partner banks/brokers.

KDT’s good working relationship with their core banks and brokers will help you to complete the account opening process and also arrange the optimum fee and pricing structure for you. With respect to the pricing arrangements, KDT have no fee sharing or retrocession agreement with our partner banks or brokers in order to obtain the optimum pricing schedule for you. Note : Some banks will be subject to a higher minimum investment account balance.

Many clients or families may have longstanding and close relationships with their bank or broker and it may not make sense to change this.  Your bank may have offered you generous loan or banking facilities and you are simply looking for an Investment Manager to improve the portfolio returns of your available cash, or perhaps you would like an additional Investment Manager to compare performance versus your bank’s in-house experts. Your bank will ask you to confirm the appointment of KDT Investment Advisors and complete its own due diligence to ensure that KDT is properly licensed and regulated to act as your Investment Advisor.

You may fund your account with a bank wire transfer or with a transfer of securities from another account. In certain cases it may also be possible to fund the account with a personal cheque.

Nowadays, a transfer is relatively straightforward. KDT will ask you and/or the authorised signatories to complete and sign a set of forms and then the transfer can proceed. Upon receipt of the forms and their approval, transfers will usually be completed within 2 weeks. If this is only a partial transfer, you will need to specify the precise details on what items are to be transferred

No, there is no limit. For larger portfolios with assets in excess of $10million, it may be wise to diversify the investments between 2 or more banks / brokers.

Some banks or brokers will only accept transfers from an account in the same name.  In certain circumstances, and provided that additional explanations and background documentation is given, banks or brokers may be able to process a transfer from a different name account. In discussion with KDT, it will be communicated to you whether the account accepts transfers into or from a different name (“third party” transfers).

Yes, transfers out of your account are processed without delay. Transfers out are verified by the bank/broker and may include a written a written instruction or a recorded phone authorization. KDT’s role as an advisor on your account may be terminated at any time without having to close the account with the bank or broker.

Yes, it is usually a simple procedure to transfer securities, however there are some important points to note :  Some banks have no charge to make a portfolio transfer out of their bank, while other banks can charge up to $100 per line of securities transfer.  In this case a portfolio of 50 securities might face a $5,000 transfer fee and therefore depending on the value of the portfolio it may be wiser to sell the securities and make single a wire transfer of the sale proceeds.  The receiving bank  must also have the security (transferring in) registered on their in-house database of securities.  Today’s financial markets have over 5million different securities and mutual funds and some of these are exclusive to an individual bank or broker and cannot be transferred away.  At the time of the transfer KDT will liaise closely with both parties and let you know whether any of your securities cannot be transferred – in the case the security can be kept at the original bank / broker or sold according to your wish.

KDT would liaise directly with you to assess the individual securities and will typically ask for a recent copy of a bank or broker statement.  Then KDT would deliver to you or your corporate services provider the template of instructions to be sent to the current bank or broker.  Once the instructions have been signed and sent, KDT will contact your bank / broker to ensure that the transfer is made without unnecessary delay.  Transfers from a US bank or broker can be made very quickly and efficiently (within 48 hours) through the ACAT system.  Transfers from a European bank / broker typically take longer, and in some cases may take several weeks to complete.

After receipt of the written instruction and formal call-back, the banks will usually take 48 hours to process an instruction.  Some brokers allow you to withdraw funds electronically to a pre-approved account held in the same name as the investment account

A partial withdrawal from the account is done upon your instruction to the bank or broker directly.  This may be done in writing or by pre-input into the broker online account management.  In all cases, the instruction will only be completed after your instruction, and KDT do not have authority to request a withdrawal from your account apart from the pre-agreed regular fees charge.

Simply advise KDT that you have decided to cancel their Investment Mandate and then instruct your investment provider accordingly.  Some banks will require formal written instructions with details of where the funds and securities should be sent.  A transfer out is activated by your new bank / broker who will need to initiate the transfer from their side.

The discretionary mandate gives KDT the authority to invest your portfolio according to the pre-agreed asset allocation and risk profile criteria for your account. The investment portfolio will be managed on a “model portfolio” basis and changes can be made from time to time without your approval, provided these changes are within the agreed asset allocation. An advisory mandate will include a similar asset allocation and risk profile review, but all changes to the investment portfolio must be agreed with you in advance.

The amount to invest is of course your decision ! Typically, account sizes start at $100,000, taking into consideration fees from KDT and the bank or broker. It is possible to start with less than this, if the long-term view is to build the portfolio over time.

Depending on your individual circumstances, KDT will typically take a cautious approach to “market timing” and not invest the portfolio immediately upon receipt of the funds. In consultation with you and with your agreement, a portfolio might for example be invested gradually over a 6 months to one year time frame.

During our initial consultations, KDT will ask a number of questions about you, your family background and financial assets and commitments. This information helps KDT to assess your risk tolerance and review with you what might be the most suitable investment portfolio allocation. The equity allocation closely mirrors the industry and sector allocation of the major markets (S&P 500) and the bond allocation is done with a careful comparison to the 5 and 10 year government benchmarks. KDT will always remain flexible to work with you and develop an individual unique portfolio to accommodate your specific requirements.

The investment process, allocation and timing is done in close consultation with you. Subject to your decision, KDT would normally expect to start the investments within a week of the account funding.

Yes, the portfolio and cash allocation is agreed during the initial consultations with you and this can be maintained or updated at any time according to your current or future cash requirements.

Each KDT client portfolio is uniquely designed, so there is no single historical performance figure.  However, the portfolio management systems used by KDT very closely mirror the Standard and Poors 500 equity index and US 10 year bond returns according to the respective portfolio allocations.  The KDT target equity investment return of inflation plus 6% for equities and inflation plus 1.5% for bonds reflects the average historical performance of US equity and bond markets during the last 80 years.

It is impossible to predict accurately your expected Investment Return however the allocation of investments between different securities are the all-important factor in determining the return. For example, long term historical and statistical averages can give you an “indication”. Since 1928 (87 years) US share/equity returns have averaged 9.6% per annum, US 10 year bond returns 5% and cash returns 3.5%. Since 2005, US share/equity returns have averaged 7.6%, US 10 year bond returns 4.9% and cash returns 1.4%. Of course these returns are entirely historical and cannot predict future performance.

KDT charges a maximum fee of 1% of assets under management. Our partner banks and brokers will additionally charge “custody” fees (based on the amount of assets held in the account) and “transaction” fees (charged per transaction made on the account). These fees vary depending on your requirements and the size of the account or investment transaction and will be clearly detailed to you in advance of account opening.

Trading commissions with KDT’s partner banks and brokers start from less than 0.05%. Trading commissions at banks are higher and vary according to the size of the account and the markets traded. KDT might be able to assist you in the negotiation of lower trading commissions at your existing bank if you decide to retain your assets there.

KDT does not charge additional custody fees. Our partner banks and brokers will additionally charge “custody” fees (based on the amount of assets held in the account). KDT strives to keep these fees modest and competitive, and might be able to assist you with the negotiation of lower custody fees at your existing investment provider/bank.

KDT makes no charge for withdrawals, nor for closing of the account.

KDT will calculate its fees based on the quarter or year end assets under management. Subject to your agreement, fees may be debited automatically from your account (usually quarterly), or charged annually by issuing a single invoice

KDT does not provide legal or tax advice however we work closely with a number of tax and legal professionals in Mauritius, London, Europe and the USA. If asked, we would normally provide you with at least 2 or 3 suitable firms or individuals for you to choose from.

You would need to consult with your Tax Advisor to determine whether there is any tax liability on your income or capital gains liability on the account with KDT. This will depend on a number of factors including your country of residence and whether the account is in your own or a corporate name. KDT do not give tax or legal advice on these issues but can refer you to experienced professionals who will be able to help.

Dividends on equities/shares may have a withholding tax (from 0% to 30%) depending on the country of incorporation of the investment. At present there is no withholding tax on bond or interest income.

Yes, as part of the close consultation with you before and during the transfer, KDT will work with you and your tax advisor (if appropriate) to ensure the transfer is done without unnecessary disposals or negative tax consequences.

You will need to review this carefully with your tax advisor.  A simple withdrawal of funds would not normally attract a tax charge, but a sale of a security at a profit (capital gain) might be a taxable event in your country of residence.  Note, the banks and brokers that work with KDT do not currently charge a withholding tax on sales of securities.

Send a message with some background information including your phone and email details via the “Contact Us” section of the website. Then KDT will reach out to you and assess the various personal factors which should be considered before making any recommendations on how best to proceed. KDT will consider your country of residence, your existing financial providers, current investments, savings, anticipated annual earnings and expenses etc. After a careful review, we will normally send you a formal investment proposal with suggestions on how you might improve your income and capital growth prospects.

All the information on this FAQ is believed to be accurate at the time of publication (April 2022). Every effort will be made to keep this information up to date but conditions and regulations are of course subject to change and may not have been updated at the time of your review.