There are no distribution restrictions other than the fact that investments in the fund can only be made by "well informed" investors. To qualify as a "well informed" investor you must be either:
This last category gives Sophisticated Investors (including High Net Worth Individuals) access to the flexible and tax attractive regime of SIFs. N.B. It should be noted that local distribution restrictions may apply. US INVESTORS Unless the Shares have been registered under the United States Securities Act of 1933 (the "Securities Act"), and the Fund registered under the United States Investment Company Act of 1940. The Shares may not be offered, sold, transferred or delivered, directly or indirectly, in the United States, its territories or possessions or to U.S. Persons (as defined in Regulation S under the Securities Act) except to certain qualified U.S. institutions in reliance on certain exemptions from the registration requirements of the Securities Act. Who are qualified US purchasers? Who are qualified US institutional buyers? |
FAQs
Eligible investors and distribution for SICAV Investment? ›
Eligible investors and distribution for SICAV Investment. There are no distribution restrictions other than the fact that investments in the fund can only be made by "well informed" investors.
What are the restrictions for SICAV investments? ›The new SIF law of February 2007 does not specify any detailed investment restrictions or leverage rules. This means that a SICAV SIF can offer access to virtually any asset class and can facilitate the pursuit of almost any investment style.
Who are qualified investors in Luxembourg? ›3 KAG the following count as qualified investors: (a) regulated financial intermediaries such as banks, securities traders, fund management companies and asset managers of collective investment schemes, as well as central banks; (b) regulated insurance institutions; (c) public entities and retirement benefits ...
Does a SICAV have shareholders? ›SICAVs have a board of directors to oversee the fund. Each individual shareholder receives voting rights and has the right to attend the annual general meetings.
What are the criteria for qualified investor? ›- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.
A UCITS must invest its funds in transferable securities and other liquid assets. This includes transferable securities admitted or dealt on a regulated market, investment funds, financial derivative instruments, cash and specific money market instruments. Uncovered short sales and borrowings are not permitted.
What are the restrictions in investments? ›Limitations that apply to the fund as a whole, such as risk factors. these are used to determine whether the fund is appropriate for a given type of investor to invest in. These are defined by the overall Fund investment policy.
What is a qualified investor vs accredited investor? ›Both are designations of investors that are permitted to invest in non-public investments. The difference between the two is that accredited investors must meet certain income, net worth or securities licensing criteria, while a qualified purchaser must simply have more than $5 million to make a large investment.
What is the difference between a qualified investor and a qualified purchaser? ›In terms of investment criteria, qualified purchasers are defined based on the value of their investments. In their turn, accredited investors are defined based on annual income and net worth. Qualified purchasers have broader investment opportunities than accredited investors.
Who are eligible investors in RAIF? ›RAIFs are available to well-informed investors, a category including institutional investors, professional investors and investors of a minimum €125,000 or who qualify under other criteria. Unlike a SIF or SICAR, a RAIF is not subject to prior authorisation or ongoing prudential supervision by the CSSF.
What type of fund is a SICAV? ›
A SICAV is a company whose capital and number of shares are not specified in advance and whose capital is divided into company and investor shares; for whose liabilities only the company's assets are liable; and whose sole object is collective capital investment (Art. 36 CISA ).
What is the difference between UCITS and SICAV? ›And for that reason UCITS Funds are mostly targeted to retail investors, while the SICAVs incorporated under the Alternative Investment Fund Directive, which in Luxembourg are mainly represented by the SICAV incorporated under the Luxembourg SIF or RAIF law, are mainly reserved for institutional investors.
What is a SICAV under Luxembourg law? ›A SICAV (Société d'Investissem*nt à Capital Variable) is a type of investment fund organized as an investment company that has a variable share capital. The value of its share capital must match at all time the value of its net assets. Increases and decreases of the capital can be made with no mandatory formalities.
What is meant by a qualified investor? ›— The Commission may, by rule or order, define a “qualified investor” as any other person, taking into consideration such factors as the financial sophistication of the person, net worth, and knowledge and experience in financial matters.
What are the three golden rules for investors? ›- Keep some money in an emergency fund with instant access. ...
- Clear any debts you have, and never invest using a credit card. ...
- The earlier you get day-to-day money in order, the sooner you can think about investing.
a restricted mass market investment is assessed as not being appropriate for a particular retail client; and. (b) the assessment of appropriateness is based on a series of questions which the retail client is required to answer.
What funds are excluded from Volcker rule? ›The Volcker Rule excludes “loan securitizations” from the definition of “covered fund” so long as the loan securitizations are comprised of loans or other qualifying assets (e.g., cash equivalents, servicing assets, certain rate or foreign exchange derivatives, interests in a tax subsidiary or similar entity formed by ...
What is a foreign investment restriction? ›FDI restrictiveness is an OECD index gauging the restrictiveness of a country's foreign direct investment (FDI) rules by looking at four main types of restrictions: foreign equity restrictions; discriminatory screening or approval mechanisms; restrictions on key foreign personnel and operational restrictions.
What is the difference between a mutual fund and a SICAV? ›SICAVs are investment companies that are incorporated as public limited companies and are regulated under European law. They issue shares to investors, who become shareholders in the company. On the other hand, mutual funds are pools of money collected from multiple investors and managed by professional fund managers.