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About SIF

Main characteristics of Specialised Investment Funds:

Scope

Regulated and tax efficient multipurpose investment fund vehicle. Dedicated to all types of investments including plain vanilla, alternative, real estate and private equity investment strategies as well as innovative strategies in infrastructure, renewable energy, collectible assets, etc

Eligible investors
  • Well-informed investors
  • Institutional or professional investors
  • Private individuals adhering in writing to a well-informed investor status and who
    • invest at least €125,000, or
    • hold from a certificate issued by a bank or MiFID firm or a UCITS ManCo, stating their necessary experience
Authorization & Supervision
  • Subject to the authorisation and supervision of the Luxembourg regulatory authority (CSSF)
Legal framework
  • Contractual form: common funds (FCP) represented by a management company
  • Corporate form: investment companies with variable capital (SICAV) structured as a public limited company (S.A.), private limited liability company (S.à R.L.), partnership limited by shares (S.C.A., etc.) or cooperative in the form of a public limited company
  • Any other legal form available under Luxembourg commercial law
  • Possibility to have separate portfolios under an umbrella structure
  • Authorised share classes
  • Cross sub-funds authorised under the same umbrella structure
Investment policy
  • Broad range of eligible assets
  • No borrowing limitations
  • Risk spreading principle (30% threshold)
Regulatory framework
  • Domicile and central administration located in Luxembourg
  • Minimum capital (net assets for an FCP) of €1,250,000 to be reached within a period of 12 months following the receipt of authorisation from the CSSF
  • Investors contributions in the form of capital and/or debt
  • Directors of the fund or of the management company (if FCP) must provide all guarantees of honourableness and professional skill in relation to the SIF profile
  • Depositary must be a Luxembourg bank or a Luxembourg branch of a bank registered in another EU member state
  • Independent auditor required
  • Investment managers subject to CSSF approval
  • Listing possible
Reporting
  • Annual audited report to be made available within 6 months of the financial year-end
  • Publication of net asset value not required
  • No semi-annual report
  • Choice of the valuation method of the assets
  • Minimum one net asset value calculation per year
  • Lux GAAP and IFRS accepted, US GAAP subject to approval by the CNC
Taxation
  • Possibility to opt for a tax transparent form (for an FCP) or a corporate form depending on the investor's requirements
  • Annual subscription tax of 0.01% of net assets. Certain investment may be exempted (e.g. Luyembourg fund of funds, microfinance funds, money market funds, etc.)
  • No taxation on capital gains
  • No capital duty applies on incorporation of the corporate form (except a registration duty of €75)
  • No withholding tax upon distribution to investors unless EU Savings Directive applies
  • Not subject to net worth tax
  • Possibility for a corporate form to benefit from double tax treaties concluded between Luxembourg and other states
  • VAT exemption on management services

 

Contacts

  • Nicolas Hennebert
    Partner - Audit
  • Xavier Zaegel
    Partner - Capital Markets/Financial Risk Leader

Related links

  • Luxembourg tax alert: SIF law ready for AIFMD
    Specialized Investment Fund law ready for AIFMD
  • Amended Luxembourg regulatory regime for Specialised Investment Funds - What are the main changes? | Brochure
    The Law of 26 March 2012 amending the Law of 13 February 2007 on Specialised Investment Funds is enforced as from 1 April 2012.

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