Specialized investment fund
What is a specialised investment fund?
A specialised investment fund (SIF) is a Luxembourg domiciled and regulated investment vehicle aimed at sophisticated investors and offering tax efficiency and a light supervisory regime. There are no limitations on the type of assets that can be held in a SIF but it must provide active portfolio management.
Where have you heard about a specialised investment fund?
If you are what the CSSF (the Luxembourg regulator) deems a ‘well-informed investor’ then you may have heard about specialised investment funds from your investment adviser. You’ll need to invest a minimum of EUR 125,000 or prove to an approved financial institution that you understand the investment risks of SIFs.
What you need to know about a specialised investment fund.
Specialised investment funds offer investors the flexibility to invest in any asset class and can be used to create a private equity fund, real estate fund or hedge fund. The fund must reach a minimum capital of EUR 1,250,000 within a year of being authorised by the CSSF which can be held in the form of debt and/or capital. Contributions must be deposited in a Luxembourg bank or a Luxembourg branch of another EU registered bank. There’s an annual tax of 0.01 percent of the net asset value of the SIF but no tax on capital gains.