SPECIALISED INVESTMENT FUND (SIF)
The Specialised Investment Fund (SIF) is a regulated, operationally flexible and fiscally efficient multipurpose investment fund regime for an institutional and qualified investor base. It is regulated by the Law of 13 February 2007 on Specialised Investment Funds introduce by the Luxembourg government. By comparison with institutional funds created under Part II of the Law of 20 December 2002 on undertakings for collective investment (UCI), the SIF is characterised by greater flexibility with regard to the investment policy, broadening of the sphere of investors and a more relaxed regulatory regime.
The SIF can issue shares only to institutional and well-informed investors.
The SIF can invest in any type of securities, hedge fund, real estate, funds, shares, buyout...
The shares are issued to:
It can therefore be used by Private funds, family offices, HNWI, families, pension pooling or hedge funds.
The SIF can invest in asset or any type of financial values: in real estate, hedge fund, Private equity, buyout, infrastructure project, cash, money, forex, funds...
The CSSF supervises the SIF, its activities and legal documents within a month after having launched the SIF. No approval of a promoter is required. Only a Luxembourg Depositary Bank is required for supervision of assets and safe keeping (but not in charge of net asset value (NAV) verification, management report...).
The director of a SIF-Sicav (established as a company) or the director of a SIF-fund (established as a fund) does not need to meet specific conditions to be approved by CSSF. They must justify their sufficient good reputation and have sufficient professional experience.
The Central Administration must be situated in Luxembourg. There is no specific requirement in the law for approval of the administrator. One NAV per year is required and one annual report 6 month after closing. The "substance need" is not required by the law like for UCITS.
The minimum capital is EUR 1.250.000 Euro to be reached within a year. Contributions in kind are possible. Capital duty is EUR 1.250 flat. Taxe d'abonnement is due at 1bp/year.
Fiscally transparent and held in trust by a management company established in Luxembourg.
Fiscally non transparent, tax exempt and could enjoy treaty benefit. It can be incorporated as a Société anonyme(S.A.), Société en commandite par actions, Société à responsabilité limitée (S.à.r.l) and cooperative company set like a S.A.. It is possible to have a single member company.