How does the SIF work?

- the fund does not have to have a promoter authorised by the CSSF;
- the fund only has to publish an annual report (not a semi-annual report);
- the fund does not have to publish issue and redemption prices;
- there is no minimum frequency for NAV calculation.

What are the specific tax provisions of the SIF?

The tax regime of the SIF is particularly beneficial. Whereas the net assets of undertakings for collective investment governed by the Luxembourg Act of 20 December 2002 are taxed annually at 0.05%, the SIF is only subject to an annual subscription tax of 0.01%. In addition, the SIF is an ideal tax-efficient asset management tool as capital gains realised through different asset classes may be reinvested. These capital gains are not taxed within the SIF.

What is the minimum required size?

The net assets of the SIF must be at least 1,250,000 euros. Given the costs of setting up and administering the SIF, a minimum size of 5 million euros is needed to offset the structural costs.

The members of the board of directors

The directors of the SIF must be approved by the CSSF based on their curriculum vitae and experience in the investment fields covered by the SIF.

What are the characteristics of the SIF in the form of a SICAV?

- exempt from income tax and wealth tax;
- not subject to European withholding tax;
- subject to a fixed capital contribution duty of 1,250 euros;
- in principle, not a beneficiary of double taxation treaties.

...and in the form of an FCP?

- fiscally transparent;
- its interest and dividends are subject to European withholding tax at source.