Question to the Department for International Development:

To ask the Secretary of State for International Development, what the total value is of management fees for investment vehicles established or used by the Commonwealth Development Corporation in (a) the Cayman Islands, (b) Mauritius and (c) the Channel Islands in each of the last six years.

The management fee paid to Fund Managers is not dependent on where the fund is established. Management fees are paid to cover the fund managers’ operational costs in managing investments in difficult operating environments.

Fund Managers do pay a licensing and registration fee to the governing jurisdiction to establish the fund. This varies depending on the size, type and location of the fund. For example, a fund established in Mauritius would pay one-off set up fees of USD$2,500 and annual fees of USD$5,000. These costs would be split proportionately between investors depending on size of their commitment to the fund.