FAQ

DQS Absolute Return Fund

- How is the fund taxed?
The fund is transparent for Dutch corporate income tax purposes. As a consequence, the fund is not subject to Dutch corporate income tax. Non-Dutch resident participants normally will not be subject to Dutch income or corporate taxation with respect to income or capital gains realised in connection with a participation, unless there is a specific connection with the Netherlands, such as an enterprise or part thereof which is carried on through a permanent establishment in The Netherlands. A participant will not become resident or deemed to be resident in The Netherlands by reason only of the holding of a participation. Participants who are individuals and are resident or deemed to be resident in The Netherlands, or who have elected to be treated as a Dutch resident participant for Dutch tax purposes will generally be taxed annually on a notional income of 4% of their net investment assets, including the value of their participation(s), at a rate of 30%, regardless of whether any distributions are received or any capital gains are realised with respect to the participation(s), provided the participation(s) are held as a portfolio investment and not, for instance, in the context of any business. Corporate and institutional participants that are resident or deemed to be resident in The Netherlands, without being exempt from Dutch corporate income tax, will be subject to Dutch corporate income tax on all income and gains realised in connection with the participations. As the fund is transparent for Dutch corporate income tax purposes, such income and gains will consist of any income derived and any gain realised in respect of the fund investments in proportion to the participant’s participation in the fund. Participants should consult their professional advisors on the tax consequences of participating in the fund.

-Is DQS Absolute Return Fund registered?
DQS Absolute Return Fund is governed by the Dutch act on Financial Supervision and other regulations and is subject to external audit. DQS Absolute Return Fund is not supervised by the Authority for the Financial Markets (AFM) as it is exempt from the license requirement under the Dutch act on Financial Supervision. As in the case of an AFM-registration, the interests of the participants are primarily protected by an adequate fund structure with clear internal audit and a strict segregation between custodian, fund management and administrator, taking into account that the custodian and administrator are independent of the fund management. The independent director of the custodian (Stichting IMFC Bewaarder) is supervised by the Authority for the Financial Markets (AFM). For further information, please refer to the Terms and Conditions of the prospectus.

- What makes DQS Absolute Return Fund different from other hedge funds?
DQS Absolute Return Fund is a multi-strategy fund and as such is not dependent on one market or one strategy. Unlike most hedge funds, strict risk management is applied to both individual positions and the portfolio. This approach makes it possible to generate high returns with limited risk.

-Who are the customers of DQS Absolute Return Fund?
The fund attracts high net worth individuals, institutional investors and ‘funds of funds’, all seeking to diversify their portfolios and get absolute returns.