The biggest advantage of this new type of fund is its flexibility both in terms of structure and management. Its purpose is the collective investment in a wide range of assets. The flexibility of investment policies allowed under the SIF is nevertheless underpinned by vigilance with regard to the risk spreading (the regulations do not permit investments of more than 30% in similar assets).

How does the SIF work?

• The fund's promoter does not have to be authorised by the CSSF
• There is no minimum frequency for NAV calculation
• The SIF can be set up as an umbrella fund

What are the fiscal provisions applicable to SIFs?

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 ideal for tax-efficient wealth management as capital gains realised through different asset classes may be reinvested since capital gains are not taxed within the SIF.

What is the minimum size of the SIF?

The net assets of the SIF must not be less than € 1,250,000. Given the costs of setting up and administering the SIF, a minimum size of €5,000,000 is needed to offset the structural costs.

Who can be a member 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 characterisitics 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
• In principle, double taxation treaties do not apply to the SIF

...and in the form of an FCP?

• Fiscally transparent
• Interest and dividends are subject to European withholding tax at source