10 Leaves

SICAV in Luxembourg


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This episode is also available as a blog post: https://10leaves.ae/publications/luxembourg/sicav-in-luxembourg

Why set up a SICAV in Luxembourg?

Luxembourg is a leading jurisdiction for investment funds and the second largest investment fund centre in the world after the United States. It is the largest fund jurisdiction in the European Union, with more than Euro five trillion of assets under management.

A big advantage is choice. Fund managers can choose the level of supervision they require, depending on the kind of clients that the fund will market itself to. Accordingly, hedge funds can be unsupervised (such as SLPs), supervised (such as SIFs) or attach themselves with a supervised AIFM (such as RAIFs).

A Luxembourg structure also offers comfort to investors, given the good reputation of the jurisdiction, the enhanced protections offered to investors and the existing network of globally-recognised service providers.

The country is a politically and financially stable EU country with a AAA-Rating. As a jurisdiction within the European Union, funds established in Luxembourg can be more easily distributed within the EU on the basis of existing passporting rights for EU funds.

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