Luxembourg investment vehicles 1 in this 2018 edition of the luxembourg investment vehicles publication we are pleased to provide you with a general overview of the main fund vehicles that can be established in luxembourg across all asset classes and investment strategies. Gdpr case studies for ucits and aif with focus on potential use and processing of investors personal data 4. Ey luxembourg publishes its 2019 edition of investment funds. The luxembourg government has continued its strong commitment to the funds industry, making an important upgrade to the range of fund structures in 2016 with. Types of regulated funds in ireland and luxembourg.
The grand duchy of luxembourg became in a few decades one of the leading locations for investment funds, being today the worlds second fund centre, overtaken only by the usa. Franklin templeton investment funds societe dinvestissement a capital variable registered office. Asset management luxembourg financial centre luxembourg. You will find below application forms and bank transfer forms for our luxembourg registered funds. Luxembourg is the favourite domicile for undertakings for collective investment in transferable securities ucits, the worlds only truly global fund product, offering the highest possible levels of investor protection luxembourgs ucits funds have become a strong global brand, but this strength stems from a smart decision in 1988. The first luxembourg investment fund was incorporated in 1959 under the contractual form and luxembourg counts today more. These documents contribute to the continued growth of the undertakings for collective investment, alternative investment funds and other investment vehicle sectors in luxembourg. Market overview luxembourg is one of the most experienced and dynamic global investment fund centres. A guide on opening an investment fund can be provided to investors by our experts in company. Ucits benefit from a european passport in that, once authorised. Susanne van dootingh independent nonexecutive director. Sif specialized investment funds all kinds of alternative investment funds the sif law made it far easier to establish alternative investment type funds. It also covers the regulations applicable to management. As of december 2018, there are 2,816 european responsible investment funds domiciled in europe with a total.
In the global financial centers index, luxembourg was ranked. Illustrative ifrs financial statements 2018 investment funds. Our analysis of the european responsible investing fund market shows that in luxembourg, the annualized growth rate of the responsible investment fund sector over the past two years 19% has exceeded the already very positive growth rate of the luxembourg fund industry as a whole. This chapter introduces luxembourgs investment fund industry and outlines luxembourgs solutions for investment. Global investment funds services dla piper global law firm.
Withholding tax study investment funds kpmg luxembourg. Introduction to luxembourg alternative investment vehicles. Luxembourg is the leading investment fund centre in europe. They can be an opportunity to make your financial resources grow faster in a time when interest rates on. Luxembourg is the leading investment fund centre in europe, second only in the world to the united states. All rights reserved linknlearn introduction to investment funds 11 to sell shares to investors to invest the proceeds in a. Sif specialized investment funds all kinds of alternative investment funds the sif law made it far easier to establish alternative investmenttype funds. Luxembourg b 35 177 offer of separate classes of shares of no par value of franklin templeton investment funds the company, each linked to one of the following. We provide a onestopshop solution that combines listing, trading and reporting services.
For this 12th edition we have looked at 124 countries and analyzed the interest taxes. Since 1959, when the first fund was established, the investment fund industry hugely expanded, counting 3,012 funds in march 2008. Ey luxembourg has just released its 2019 edition of investment funds in luxembourg a technical guide, designed to answer many questions on setting up and operating investment funds in luxembourg. Then in 2007 a new law, created the specialised investment fund sif, which provided an additional vehicle specifically designed for qualified international investors. Luxembourg offers a full range of investment vehicles and its financial supervisory authority, the commission.
In november 2019, net assets under management of investment funds in the grand duchy of luxembourg 11. Asset management groups from more than 50 different countries have set up investment funds in luxembourg and many pension funds consider them to be the ideal mechanism for accessing. Luxembourg luxembourg is only the size of manhattan, but it is the biggest domicile for investment funds in europe including all related industries and the second most preferred location for investment funds globally after manhattan. Nov 14, 2019 this statistic shows the quarterly number of investment funds in luxembourg, either ucits or aif, from the first quarter of 2015 to the second quarter of 2019. Comparison table of luxembourg investment vehicles. Access is quick and easy and there are no additional requirements related to ucits approval. It is also important to know that the financial sector is the most representative for the luxembourgs gross domestic product. Changes to the funds and meetings of unitholders 42 29. Investment funds in luxembourg ey financial services thought. However, fire sales by funds could have 1 in this paper, investment funds refer to collective investment vehicles. Various measures have been implemented in luxembourg to help luxembourg funds tackle the impact of the covid19 outbreak.
Jpmorgan investment funds societe d investissement a capital variable, luxembourg audited annual report r. Expertise in investment funds structures in luxembourg. Main characteristics of investment funds based on iso 10962 types of investment funds traditional long only funds in europe, ucits funds, hedge funds, private equity funds, real estate funds, exchangetraded funds, funds of funds, pension funds, others. The luxembourg stock exchange offers a unique service for asset managers looking to list an investment fund.
Luxembourg b 35 177 offer of separate classes of shares of no par value of franklin templeton investment funds the company, each linked to one of the following subfunds the funds of the company, at the published offer price for the shares of the relevant fund. Luxembourg is an important financial centre with a highly developed regime for investment funds. Ey luxembourg publishes its 2019 edition of investment. The label part ii funds originates from the 2002 law. The undertakings for collective investments are authorized and supervised by the commission for the supervision of the financial sector cssf. Since investment funds are investment vehicles, risks are borne by investors not asset management companies, and are reflected in the floating net asset value of the fund. Luxembourg has been very successful in attracting international investment funds and becoming a major financial center due to a series of factors. This study analyzes the withholding tax wht rates of different jurisdictions with respect to luxembourg investment funds, in order to provide a snapshot of each jurisdictions situation. This full service offering means that we are able to advise on the structuring, formation, taxation and regulation of alternative investment funds to provide commercial and practical. The alternative investment fund managers directive aifmd, which grants a european passport to the managers of alternative funds came into effect in 20.
Rapid implementation of the directive has helped luxembourg to further develop its role as a wellregulated hub for the global alternative investment industry. Types of regulated funds in ireland and luxembourg undertakings for collective investment in transferable securities. In the past, alternative investment funds were generally created under part ii of the luxembourg law on investment funds. Your investment fund in luxembourg pwc legal luxembourg. Role of investment funds in the asset management industry. Sep 12, 2016 0,01% is applicable under certain conditions and for certain types of investment funds. Statement of comprehensive income1 by nature of expense 1p82, 81b, 85, year ended 31 december 102, 1 note 2018 2017 1p82a income 1p85 interest income 5 167 74 interest from. Organization of a uci and its service providers 16 2 uci structures and specificities 24 2. These numbers clearly show the attractiveness of luxembourg reifs to a global investor base. Impacted investment funds as of today, three types of investment funds are impacted by the law. With more than eur 4,000 billion in net assets under management, luxembourg is the largest investment fund centre in europe and the second largest in the. New measures for luxembourg investment funds in the context.
This is because luxembourg has a highly tuned legal and regulatory framework which combines rigorous investor protection with an unequalled degree of flexibility in fund design. A guide on opening an investment fund in luxembourg blog. No person has been authorised by the company to give any information or make any representations in. They also underline luxembourgs strength as a crossborder distribution hub. Luxembourg investment funds ucits and nonucits are not subject to net wealth tax in luxembourg.
This internationallyrenowned publication updated annually over the last 25 years covers recent legislative and regulatory changes. For our investors we have published the application form userguide which provides explanatory notes to assist you in completing the application form. This statistic shows the quarterly number of investment funds in luxembourg, either ucits or aif, from the first quarter of 2015 to the second quarter of 2019. Download the 2019 edition of investment funds in luxembourg a technical guide 9. The purpose of this technical guide is to provide, in a clear and concise format, an introduction to luxembourg as a center for investment funds, the types of funds available and a summary of the regulations applicable to the formation and operation of luxembourg investment funds. Protecting luxembourg investment funds and companies. The first luxembourg investment fund was incorporated in 1959 under the contractual form and luxembourg counts today more than 3,800 undertakings for collective investments ucis. In compliance with law 152003 of 18 december on protection of personal data, the customer authorizes that the applicants personal data entered on this form will be incorporated into files owned and managed by mora banc grup, sa mora banc, sau hereafter referred to as morabanc to process the requested service and. These can be found here and here this is a fastmoving crisis and it is important to closely monitor the outbreak, its business impact and how it may affect the governance and performance of luxembourg funds. Our investment funds group, unlike many of our competitors, maintains dedicated funds specialists in our global regulatory, tax, employment and pensions teams. Such registration however does not imply a positive assessment by the. Guide to setting up an investment fund in luxembourg. Luxembourg investment funds are sold to retail and institutional investors, including many pension funds, in more than 70 countries around the world.
Ms van dootingh was at state street global advisors from 2002 to 2017 with her final position being as senior managing director, head of european. Kpmg luxembourg has developed outstanding technical knowhow in eu and global tax matters and is now filing claims on behalf of several european and noneuropean investment funds in numerous countries, such as france, germany, south korea, poland, taiwan and more. New measures for luxembourg investment funds in the. The luxembourg stock exchange and alfi welcome this cooperation which enables the financial sector to be provided with updated reference texts.
Cssf 7 your investment fund in luxembourg december 2019 sif 39% part ii 7. Morgan stanley investment funds the company is registered in the grand duchy of luxembourg as an undertaking for collective investment pursuant to part i of the law of 17 december 2010 on undertakings for collective investment the 2010 law. Luxembourg b 35 177 offer of separate classes of shares of no par value of franklin templeton investment funds the company, each linked to one of the following sub funds the funds of the company, at the published offer price for the shares of the relevant fund. Investment objective and policy investment restrictions 19 23.
Investment funds in the grandduchy cover all key categories, currencies, regions and sectors. Investment funds in luxembourg asset management morabanc. Blackrock investment funds prospectus 28 april 2020. An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own. Luxembourgs investment funds have a dominant share in both the retail and the institutional marketplace in europe, and are the vehicle of choice in many parts.
There is also a significant proportion of funds 42% that are distributed in one single country. Replacing the existing 1991 law on institutional funds, the new law importantly allows a. This overview can assist you in better understanding. Under emergency legislation applicable with immediate effect for three months with a view to contain the rapid spread of covid19 in luxembourg, luxembourg enacted on 20 march 2020 temporary measures applicable to all companies and investment funds to provide for virtual shareholder meetings, board meetings and meetings of supervisory boards i.