KDT Investments Advisors | FAQ
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FAQ

about KDT

What do KDT do ?

We offer Investment Advice and the supporting services of a small Family Office.  You can access the investment advice by either signing up to “Discretionary” or an “Advisory” investment mandate.  Our “Consolidated Reporting Service” provides you with an Investment Overview and comparative analysis of two or more investment portfolios held at different institutions.

What do the initials KDT represent ?

The full text would be Koti Dowdeswell Team.  Jesse Koti (co-founder) with Tim Dowdeswell (co-founder) and their Team of professionals can be found on the Who We Are page of the website.

Why did KDT decide to setup in Mauritius ?

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.

Why did KDT start up in the highly competitive and regulated Financial Services industry ?

Around the world, most banks and financial institutions are faced with increasing regulatory burdens and higher costs.  As a consequence, many are simultaneously increasing fees, downsizing their commitment to private wealth and outsourcing their technology to external independent investment advisors such as KDT.  This has created the opportunity for Jesse and Tim to launch their business and offer private clients a quality banking and investment support service at a modest cost.

General

Whom do I contact with any queries ?

You may email Jesse Koti (jesse@kdtinvestments.com) or call him on +230-576-052-51

or email Timothy Dowdeswell (timothy@kdtinvestments.com) or call him on +230 5712 9270

What would happen if KDT is acquired, or goes public or ceases business operations ?

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 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 authorised corporate signatory take over total management of the account.

When would a Consolidated Reporting Service be useful for me ?

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 an independent service that will help you do this.

Why don't you display reviews or testimonials from your clients ?

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.

How does KDT protect the assets in my account ?

Through our preferred bank (a major Swiss bank in Singapore) and Interactive Brokers (USA), the following guidelines apply :

  1. All client assets are kept segregated from the general assets of the bank /broker.
  2. No margin or re-hypothecation agreements are signed which avoids the risk of your assets being subject to creditor litigation.
  3. The account is held in your own name or company name and KDT only has authority to give trading instructions for the purchase or sale of securities, or for the payment of fees to KDT.  Any withdrawal or transfer of securities out of the account must be approved by you in writing and by recorded phone call.
  4. Both our Swiss Bank and Interactive Brokers have insurance protections to protect your assets in the unlikely event of the bank or broker bankruptcy.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Account Information

What types of accounts does KDT currently support?

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 London, Singapore, New York or elsewhere.  KDT also supports offshore or onshore pension accounts including traditional Individual Retirement Accounts (IRAs) in the USA.

Who may open an account with KDT?

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

Once the account is opened, can I change from an invididual to joint name or to a corporate name ?

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.

What is the minimum amount required to invest with KDT?

There is no minimum account balance however KDT’s minimum annual account fee of USD$2,500 would usually require an investment portfolio of at least $100,000 to justify the costs.  This entitles you to a periodic review of the portfolio and timely and pro-active recommendations designed to enhance your investment returns.

Where is my money held ?

Your money and securities are held in an account in your own name or in the name of your company or trust.  You can either retain your existing bank or investment broker or open an account with either of KDT’s approved investement firms : Interactive Brokers or a major Swiss bank in Singapore.  In all cases you appoint KDT as Investment Advisor and KDT manages the account in consultation with you.  Interactive Brokers is a fully licensed and regulated US broker, based in Greenwich, Connecticut with over $82 billion of client assets worldwide.  Interactive Brokers has been voted the number 1 online broker by Barrons for 6 consecutive years and is supported by $5billion equity capital.  The Swiss Bank is part of a worldwide group which is considered to be the world’s largest manager of private wealth assets (over $2 trillion) serving over 3 million high net worth clients worldwide.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com

Why a Swiss bank in Singapore?

The Swiss bank in Singapore is the Asian headquarters of perhaps the world’s most prestigious private bank.  KDT’s good working relationship with this bank and their Singapore staff 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 the Swiss bank and our interest is aligned with yours to obtain the optimum pricing schedule for you.  Note : The Swiss bank will be subject to a higher minimum investment account balance.

Why Interactive Brokers ?

Interactive Brokers offers an efficient, online and cost effective investment account with all the safeguards, protections and security of a US regulated broker.  Once your account is approved, you will be assigned a password and security codes to access your account online, monitor closely and obtain daily and monthly reports when needed.  You are able to complete withdrawals and deposits into the account without needing to contact either KDT or Interactive Brokers.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Why choose your own Bank or Investment Broker ?

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.  Only limited paperwork is needed.  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.

How do I start and open an account with KDT Investment Advisors ?

Send a message with some background information including your phone and email details via the “Contact Us” section of the website. Then Jesse or Tim 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 Jesse or Tim would normally then send you a formal investment proposal with suggestions on how you might improve your income and capital growth prospects.

Transfers / Deposits / Withdrawals

Can I transfer all or part of an existing account to KDT ?

Nowadays, a transfer is relatively straight forward.  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.

Is there a limit to the amount of funds which can be deposited ?

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.

How do I deposit additional funds ?

Additional funds may be deposited by bank wire transfer or by a transfer of securities.  “Dollar cost averaging” is a proven strategy which invests constant amounts at regular intervals and reduces the risk of market timing.

May I transfer funds from an account in a different name ?

Interactive 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, the Swiss bank in Singapore may be able to process a transfer from a different name account.

 

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

May I transfer funds and securities out of my account ?

Yes, transfers out of your account are processed without delay.  Please note that Interactive Brokers will only process a transfer out to a same name account.   The Swiss bank in Singapore will process transfers both to a same name account and third party accounts (with additional explanation/documentation).  Transfers out of a Swiss bank account will require a formal “callback” confirmation with the Swiss bank representative.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

How do I fund my account ?

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.

How can I see the progress of my account transfer ?

Both the Swiss Bank in Singapore and Interactive Brokers provide online access which allows you to check the portfolio valuation and activity on the account as and when required.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Can I transfer my outside portfolio to KDT and/or do I need to sell securities before the transfer ?

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 (in this case the Swiss bank in Singapore or Interactive Brokers) 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.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

How do you handle a transfer of a portfolio of securities ?

KDT would liaise directly with you to assess the individual securities.  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.

How long does it take to withdraw funds from the account ?

After receipt of the written instruction and formal call-back, the Swiss bank in Singapore will usually take 48 hours to process an instruction.  Interactive Brokers withdrawals must be input by you into the systeme and are completed online within 24 hours.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

How do I make a partial withdrawal from my account ?

A partial withdrawal from the account is done upon your instruction to the bank or broker directly.  This may be done in writing (the Swiss bank’s preferred mode) or by pre-input into the broker online account management (Interactive Brokers’ preferred mode).  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.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

How do I withdraw all funds and close the account ?

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

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Investment Strategy

What is the difference between a KDT discretionary mandate and a KDT advisory mandate ?

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.

How much should I invest with KDT ?

The amount to invest is of course your decision ! KDT minimum fees of $2,500 would usually require a minimum investment portfolio of $100,000 or more to keep the overall cost and % management fee at a reasonable level.

How does KDT deal with and manage "market timing" ?

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.

When can I expect my money to be invested ?

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.

May I keep uninvested cash in my account ?

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.

What is your historical performance ?

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 10% for equities and 5% for bonds reflects the average historical performance of US equity markets during the last 80 years.

What is my expected Investment Return ?

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.

How do you assess my risk tolerance and devise the subsequent asset allocation of the portfolio ?

During our intial 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.

Fees

How much does KDT charge ?

KDT will normally charge a fee of 1% of assets under management.  For accounts with assets in excess of $1million, this fee is negotiable down to a lower level.  KDT makes no time charge and takes no other charges apart from this single asset related fee.  Interactive Brokers  do not have asset or custody fees, but there is a minimum activity fee- for more information click here.  The Swiss bank in Singapore’s fees  will vary according to the size of the account (minimum account size $3million).

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website. For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

What are the trading commisions with KDT ?

Trading commissions with Interactive Brokers are less than 0.05% (vary according to the exchange-for more information click here). Trading commissions at the Swiss bank 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.

 

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website. For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Does KDT or the bank / broker charge custody fees ?

KDT does not charge additional custody fees.  Interactive Brokers does not charge custody fees- for more information click here.  The Swiss bank in Singapore charges a modest and competitive custody fee which varies according to the size of the account.  Again, KDT might be able to assist you with the negotiation of lower custody fees at your existing investment provider / bank.

 

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website. For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Does KDT charge fees for withdrawals or for the closing of the account ?

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

How does KDT calculate its fees ?

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 (usually in January).

Does KDT offer an "introducer's fee" ?

Of course we would be very pleased to accept a referral or introduction from you !  Subject to your referral opening the account  and paying the first year’s fees, KDT would reduce your fees by 50% of your referral’s fees paid to KDT.

Tax

Will KDT assist me with my tax reporting ?

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.

Is there tax payable on the dividends or interest received on the account with KDT ?

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.

Will I have to pay taxes on the withdrawal or sales in the account ?

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 : neither the Swiss bank in Singapore nor Interactive Brokers take a withholding tax on a sale of securities.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including KDT Investments Advisors Limited.   Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Will KDT handle the transfer of my assets in a tax efficient manner ?

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.

Will KDT share or exchange information on my account with others ?

According to Common Reporting Standards due to be implemented in 2017 and 2018, your account information (your name, address, citizenship, date of birth and the portfolio valuation) might be shared with the tax authority of your country of residence.  Although many details have not yet been finalised it is expected that this information will be routinely shared between all countries in the world.  Today all major countries have agreed with only the Cook Islands refusing to participate.  The exchange of information will take place at the bank level, so it will be the bank where your account is held, who will disclose and report to the tax authority where the bank is based.  Then in turn the local tax authority (where your bank is based) will report this information onwards to the tax authority of your country of residence.  KDT will only disclose information about your account upon receipt of a specific request from the Mauritius Financial Services Commission.

Important Disclosure

All the information on this FAQ is believed to be accurate at the time of publication (November 2016).  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.