FUNDS IN GENERAL

There are several philanthropy funds that are specifically designed to support charitable causes. These funds pool resources from individuals, corporations, and foundations, investing those funds to achieve both financial returns and social good. Here are some examples:

1. Donor-Advised Funds (DAFs)

• DAFs are one of the most popular forms of philanthropic investments. Individuals or organizations can contribute to these funds, which are then managed on their behalf for charitable purposes. DAFs offer tax benefits and allow donors flexibility in deciding when and how to distribute the funds to charities.

• Well-known examples: Fidelity Charitable, Schwab Charitable, Vanguard Charitable.

2. Foundation Funds

• Foundations are often associated with large corporations or wealthy individuals and are designed to support long-term philanthropic goals. These foundation funds invest their capital so that the returns can be used to support charitable causes.

1741 is only interested in liquid strategies for fund transfers.

- For smaller fund transfers of e.g. CHF 20m AUM they take 30 bps (or more) and this margin is shared with us.

- If the size is larger and margin smaller, 10 bps or min. CHF 50k p.a. is decisive for 1741 FS and everything above we will get.

- No transfer costs will be charged.

Minimum Requirements: The client is AO (equivalent) and has or has had a fund (fund experience) or the case is CHF >100m in illiquid or CHF >50m in liquid strategies.

Please find my answers below:

• Distribution: The offer states: ‘The Investment Fund can be distributed to qualified investors in Switzerland’. The distinction between qualified and retail is understood. What remains to be clarified is whether a qualified investor residing in the EU, both individual or corporate, can subscribe to the Fund. Your email from yesterday referring to ‘investors domiciled abroad’ suggests that this is possible. We need definitive clarity on this point, let us know if you can provide it or if we should also double check with our legal counsel.

1741: Swiss investment funds can be subscribed by any kind of investors, i.e. also from investors residing in the EU. However, it is not allowed to carry out any distribution activity in the EU. As mentioned during our call, the presentation of the fund to members of your own network would not be qualified from our side…