The Luxembourg Investment Fund
Start a Tax Efficient Fund in the Heart of the EU
Who Should Setup a Fund in Luxembourg?
For those interested in setting up their own fund, Luxembourg is the most popular place in the world after the US.
Fully compliant with EU law, these funds can immediately be promoted all over Europe. They are flexible in registration and use, and offer a fast time-to-market perspective.
This makes Luxembourg ideal for many fund types, including umbrella funds, hedge funds, private equity, real estate, family offices, or mutual funds.
The information on this pages explains setting up a tax-efficient and properly licensed investment fund in the EU in a fast and affordable manor…
Enjoy These Benefits:
Adaptable to your objectives. Wide variety of asset classes possible; including plain vanilla stocks and bonds, as well as innovative strategies in infrastructure, renewable energy, forex, precious metals, and many more.
Compliant with EU regulations. World-wide accepted standards.
Not subject to any taxes on capital gains or income in Luxembourg.
Luxembourg is the biggest and best known domicile for investment funds in Europe and the second most preferred location for investment funds globally after the US.
The Collective Investments Industry counts 15,000 funds with Assets under Management reaching 4.6 trillion dollars. The Luxembourg financial authority, the Commission de Surveillance du Secteur Financier (CSSF) is one of the major regulators in Europe and recognised internationally for a pioneering and flexible regulatory framework.
The Fund industry in Luxembourg provides the finest fund structuring expertise, servicing capabilities and distribution access to launch and run your fund.
Important Features of Luxembourg Funds
Popular Fund Structures:
Luxembourg Specialised Investment Fund (SIF)
SIFs are regulated and tax efficient multipurpose alternative investment fund vehicles dedicated to all types of investments.
A SIF is formed either in contractual form and consequently as an Investment Fund represented by a Managing Company (fonds commun de placement, FCP) or in the form of a company, namely as an Investment Company whose capital is variable (SICAV) or fixed (SICAR).
SIFs enjoy several tax advantages including exemption from capital gains tax for investors, annual subscription tax is as low as 0.01% of NAV (certain exceptions apply), the capital duty on incorporation is waived, and investor holdings are not subject to net worth tax.
This specific fund structure accounts for nearly 40% of the collective investments industry in Luxemburg as at the end of 2019 and was the most popular AIF structure until the introduction of the RAIF.
Luxemburg Reserved Alternative Investment Fund (RAIF)
The RAIF structure was introduced in 2016 and combines features of the, until then, most popular fund structures in Luxembourg, namely SIF and SICAR. RAIFs are limited to well-informed and professional investors and offer diversification and multiple strategy activation through its “umbrella” structure with multiple compartments. This specific structure enjoys low subscription tax of 0.01% of the NAV.
RAIFs can be incorporated and launched with a simplified process (usually 4-6 weeks), since it is not supervised by the CSSF. RAIFs are subject to the provisions of the AIFMD and supervised by an authorized EU Alternative Investment Fund Manager (AIFM) and enjoys the benefits of marketing across the EU using the European Passport legislation.
The recently introduced RAIF structure appears to be the preferred choice for newly incorporated Funds. RAIF registrations have extended to almost 1000 by the end of 2019, achieving an increase of 120% in just 18 months.
Important Regulatory Notice
This type of fund is called an Alternative Investment Fund (AIF). In Europe, an AIF is divided into an entity holding the assets, and one managing them. The latter is called an Alternative Investment Fund Manager (AIFM).
AIFM’s are collectively regulated by the European Union. They fall under the Alternative Investment Fund Managers and amending Directives (AIFMD). Properly licenses AIFM’s, obtain the AIFMD Passport, allowing them to offer their services all over the EU.
Whether you are an EU or a non-EU fund manager, a start-up fund or an established fund looking to market to EU investors; then the use of a licensed AIFM is a necessity to obtain the Passport.
While it is possible to register your own AIFM, this process is long and cumbersome; most funds opt to use an existing licensed AIFM. It takes care of all the administrative work, while they focus on what really matters: growing and promoting the fund!
Oneworld Plus Management is a dedicated Alternative Investment Fund Manager (AIFM) providing third party AIFM services.
We have the specialist expertise and resources to support you in developing your investment funds, whilst meeting legal and regulatory requirements.
Because we are a fully compliant & licensed entity, we offer a turnkey solution preventing you having to go through costly and lengthy approval processes in addition to extensive capital requirements.
Oneworld Plus Management is part of the Oneworld Group. With our 33 year of history, Oneworld Group currently employs more than 100 people and its client portfolio includes over 2.000 international companies and HNW individuals. Oneworld Group has responsibility for over US$5 billion worth of assets on behalf of its clients, mostly in west and east Europe. Overall, our team has setup and managed over 50 funds in Luxembourg, Cyprus, Malta, and Cayman Islands in a diverse variety of alternative asset classes.
Oneworld Plus Management Ltd is licenced by CySEC under license no. AIFM35/56/2013.
Our AIFM Services
We can assist with the administration of your fund…
We are an officially licensed Alternative Investment Fund Manager (AIFM).
We provide AIFM services to fund initiators, promoters and fund managers.
Each AIF is required to have an independent valuation of the assets.
This can be done by an external valuer, but we also offer this as a service. As licensed AIFM, we are legally liable for this valuation.
We assist with meeting the compliance obligations of your fund.
AIFMD, AML & reporting regulations, your offering document/prospectus, fund domicile regulations, operating procedures and agreements.
The AIFM must implement a risk management system for each fund.
We assist with the identifying, measuring, managing and monitoring all of the risks relevant to the investment strategy.
According to regulations, an AIFM is the entity that “manages” the fund.
We must, as AIFM, at least perform, the portfolio management and risk management functions. This can be delegated.
The regulations demand detailed reporting of each fund.
We can report on instruments traded, principal exposures, illiquid assets, stress testing results, leverage analysis, and more…
Interested in setting up your fund in Luxembourg?
Fill in the form below. After we received your message one of our experts will email you the best approach for your fund.