Key Features

The SIF is a regulated, operationally flexible and fiscally efficient investment fund for an international qualified investor base. Investment in a SIF is reserved for “well-informed” investors, comprising institutional investors, professional investors and investors who confirm in writing that they are a “well-informed” investor and who either

  • invest a minimum of EUR 125,000 or have
  • been assessed by a credit institution, investment firm or management company which certifies the investor’s ability to understand the associated risks of investing in the SIF.

There are currently no restrictions as to the eligible assets of a SIF, but SIFs are subject to the principle of risk-spreading. SIFs are not subject to detailed investment or borrowing rules. A SIF may take the basic structure of a common fund (FCP) or an investment company with variable capital (SICAV), or fixed capital (SICAF). These different vehicles may be set up as a single fund or as an umbrella fund consisting of multiple compartments, each with a different portfolio of assets and liabilities.

The net assets of a SIF may not be less than EUR 1,250,000. This minimum must be reached within a period of twelve months following its authorization. Unless otherwise provided for, the assets of a SIF must be valued at fair value. SIFs must have appropriate risk management systems in place to identify measure, manage and monitor the risks associated with the positions and their contribution to the overall risk profile of the portfolio.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Common Fund (FCP), Investment Company-variable capital (SICAV),  Investment Company-fixed capital (SICAF), Limited partnership

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

EUR 125,000

  • Minimum investors

None

Directors

  • Minimum number

1

  • Corporate directorship allowed

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes (local for FCP)

  • Fund administrator

Yes (Local)

  • Auditors

Yes

Tax Treatment

A SIF is tax exempt in Luxembourg with the exception of the registration duty, which is fixed and does not vary with the number of compartments, and an annual subscription tax. There is no stamp duty in Luxembourg on the issuance or transfer of shares or units.

Duration to Set Up

About 6 months

Distinctive Benefits of Licence

  • Internationally recognised investment fund industry;
  • Reputable regulatory environment owing to its accessibility, knowledge and responsiveness of the regulator;
  • Political, economic and social environment’s stability as well as stable legal environment;
  • Favourable tax environment;
  • Attractive jurisdiction for institutional investors; and
  • Luxembourg investment funds benefit from a product passport, enabling them to be marketed to investors in the European Union (EU) and European Economic Area (EEA).

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers