Why are funds based in Luxembourg?
Why are funds based in Luxembourg?
By basing their funds in Luxembourg, they benefit from the country’s reputation as a well-regulated and supervised financial centre, which facilitates global fund distribution. Fund initiators from the US and the United Kingdom have currently the highest market shares in terms of assets under management.
How much does it cost to set up a fund in Luxembourg?
Depending on all of these criteria, the incorporation of a Luxembourg Investment Fund can start as low as 25 000 Eur. The Running costs start from 20 000 Eur a year and will evolve with the asset under management, the custody, the audit, the marketing, the reporting, etc.
Does Luxembourg have a stock market?
The Luxembourg Stock Exchange, LuxSE (French: Bourse de Luxembourg) is based in Luxembourg City at 35A boulevard Joseph II.
What is an AIF fund Luxembourg?
AIFs refer to all investment funds that are not covered by the EU Directive on UCITS and instead fall under the Alternative Investment Fund Manager Directive (AIFMD). This includes hedge funds, funds of hedge funds, venture capital, private equity funds and real estate funds.
How many funds are there in Luxembourg?
Between 2006 and 2020, the total number of investment funds in Luxembourg increased considerably. At the end of 2020, there were 14,590 fund units, a decrease of 218 fund units when compared to the previous year. Luxembourg’s fund industry is considered to be one of the largest in Europe.
What is a 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 do I start an investment fund in Luxembourg?
Establishing both types of investment funds in Luxembourg requires having a permit and complying with the requirements of the Committee for Financial Supervision (CSSF). To be able to invest in a fund, investors must provide documentary evidence of having 125 thousand euros.
How many registered funds are there in Luxembourg?
Is the Luxembourg Stock Exchange a regulated market?
The Luxembourg Stock Exchange operates two markets: the EU-regulated Bourse de Luxembourg Market and the exchange-regulated Euro MTF. Both markets provide issuers greater visibility and all securities listed on one of our markets are admitted to trading on our exchange.
What time does the Luxembourg Stock Exchange close?
The Luxembourg Stock Exchange is open Monday through Friday from 9:00am to 5:30pm Central European Summer Time (GMT+02:00).
What are AIF funds?
AIF consists of investment funds that are privately pooled that invest in private equity, venture capital, hedge funds, managed funds, etc. AIF means an investment that differs from conventional investments such as debt securities, stocks, etc.
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.
How big is the Investment Market in Luxembourg?
1. Investment Funds Market Overview Luxembourg is the world’s second-largest fund domicile after the USA, as the assets under management of Luxembourg-domiciled funds stood at EUR4,674.665 billion as at 31 October 2020.
Where are Luxembourg investment funds domiciled in the world?
Luxembourg’s investment fund industry is a world leader in cross-border fund distribution, as Luxembourg-domiciled investment structures are distributed in over 70 countries around the globe, with a particular focus on Europe, Asia, Latin America and the Middle East.
What are the different types of Luxembourg funds?
The formation process of a Luxembourg fund depends on its legal form. Whereas a Part II UCI with variable capital may only take the form of a public limited liability company (SA) or a common fund (FCP), a SIF, a SICAR, a RAIF or a Soparfi may be structured as: solely in respect of the SIF and the RAIF, an FCP.
Why is Luxembourg a good country to invest in?
The reason for Luxembourg’s success comes from the country’s combination of strict consumer protection along with its flexibility in fund types. At the end of 2019, the distribution of total net assets in the UCI sector (undertakings for collective investment, a term used for investment funds) shows that bonds represented approximately 30 percent.