What is a Sicav in Luxembourg?

What is a Sicav in Luxembourg?

The term SICAV is an acronym for Société d’investissement à Capital Variable. These funds are most well known and used in France, Luxembourg, and Italy. Similar to open-end mutual funds, SICAVs do not have a fixed number of shares traded in the public market.

Can Sicav be closed ended?

The SIF may be constituted as contractual-type mutual funds (FCP) or as investment companies with variable capital (SICAV) or fixed capital (SICAF). SIFs can be open or closed-ended and may be set up as a stand-alone fund or as an umbrella structure consisting of multiple sub-funds or compartments.

What is Luxembourg Raif?

Description. The Reserved Alternative Investment Fund (RAIF) is an investment fund that can invest in all types of assets. It qualifies as alternative investment fund (AIF) and is not itself subject to CSSF product approval. RAIFs must appoint an authorised external Alternative Investment Fund Manager (AIFM).

How many RAIFs are there in Luxembourg?

Since its introduction in 2016, the RAIF has proven to be one of the most popular investment products in the Luxembourg Fund Industry. It has been so successful in fact, as of December 2020 there are more than 1,200 RAIFs on the market.

Can a SICAV be an AIF?

SIFs and SICARs are AIFs and either need to appoint an alternative investment fund manager (AIFM) or can be self-managed internally.

Does a SICAV have legal personality?

Although sub-funds have no legal personality, they generally constitute a separate economic entity under an umbrella fund (i.e., the SICAV), as their assets and liabilities are legally segregated.

Does a Sicav have legal personality?

Can a Sicav be an AIF?

What is an SCA in Luxembourg?

A partnership limited by shares (société en commandite par actions – SCA) is a commercial company. The SCA is a useful legal form for bringing together investors and entrepreneurs. In addition, it is set up to enable the company to resist hostile takeovers.

Is a SIF an AIF?

A Specialised Investment Fund (SIF) is an investment fund that can invest in all types of assets. It usually qualifies as alternative investment fund (AIF) and can be sold to well-informed investors.

What is SIF law?

A specialized investment fund or SIF is a lightly regulated and tax-efficient regulatory regime in Luxembourg aimed for a broader range of eligible investors. On 12 July 2013, the SIF regime was amended by the law on alternative investment fund managers (AIFM law).

What is the minimum capital requirement for a SICAV in Luxembourg?

The minimum capital requirement for such a fund is EUR 1,250,000 which must be deposited within six months after the fund has received approval for its investment activities in Luxembourg. Provided that the SICAV in Luxembourg is registered under the SIF Law, the company’s capital can be reached in a period of one year.

What is the minimum share capital required for a SICAV or SICAF?

The subscribed share capital of a SICAV or SICAF in Luxembourg must reach 1.25 million euros within six months after the company begins its activities. The timeframe for reaching the necessary capital is 12 months for Specialized Investment Funds (SIF) . The minimum share capital of the investment fund depends of the type of company chosen.

Can SICAVs benefit from the double tax treaties signed by Luxembourg?

It is necessary to know that the SICAVs can benefit from the double tax treaties signed by Luxembourg based on the Circular Letter L.G. – A no. 61, signed on 12th of February 2015.

What is the minimum capital requirement for a fund in Luxembourg?

This fund structure does not need any formalities for increasing and decreasing of the company’s capital. The minimum capital requirement for such a fund is EUR 1,250,000 which must be deposited within six months after the fund has received approval for its investment activities in Luxembourg.

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