What Is The Difference Between Sicav And Ucits?

What is a Sicav Raif?

The Reserved Alternative Investment Fund (RAIF) is an investment fund that can invest in all types of assets.

It qualifies as alternative investment fund (AIF) and is not itself subject to CSSF product approval.

RAIFs must appoint an authorised external Alternative Investment Fund Manager (AIFM)..

What is a oeic?

Unit trusts and Open-Ended Investment Companies (OEICs) are professionally managed collective investment funds. A fund manager pools money from many investors and buys shares, bonds, property or cash assets and other investments.

Are Ucits funds regulated?

UCITS are investment funds, regulated at a European Union (EU) level. In creating a set of common rules and regulations it allows such funds: to seek a single authorisation in one EU member state, and. to register for sale and market across EU member states.

Is a Raif regulated?

The RAIF is a flexible, multipurpose alternative investment fund that can be marketed quickly. It is regulated through its relevant manager, under the Alternative Investment Fund Manager Directive (AIFMD).

What is a Ucits platform?

UCITS stands for Undertakings for the Collective Investment in Transferable Securities. This refers to a regulatory framework that allows for the sale of cross-Europe mutual funds. UCITS funds are perceived as safe and well-regulated investments and are popular among many investors looking to invest across Europe.

Who can invest in Ucits?

You can purchase UCITS funds through a U.S.-based fund manager. That said, only an authorized EU-based management company can oversee that fund. So a U.S. fund manager either must set up such a company or partner with one.

What does it mean to launch a fund?

A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.

What is AIFM Luxembourg?

An Alternative Investment Fund Manager (AIFM) is any legal person whose regular business is managing one or more alternative investment funds (AIFs). AIFMs are governed by the Law of 12 July 2013 on alternative investment fund managers.

What is SIF banking?

DEFINITION. A Specialized Investment Fund (“SIF”) is a regulated, operationally flexible and fiscally efficient multipurpose investment fund regime for an institutional and qualified investor base.

What is specialized fund?

Specialized funds focus on very specific industries, including commodities, regions, or other segments of the market. These funds include sector funds, balanced funds, asset allocation and target date funds. Using these funds, investors can gain access to banking, real estate, chemicals, energy or telecommunications.

Are ucits open ended?

UCITS were designed with the retail consumer in mind, ensuring appropriate levels of protection for investors. The key common aspects of UCITS funds are that they must be open-ended and liquid. … Exchange Traded Funds (ETFs) and Money Market Funds (MMFs) are almost always established at UCITS funds.

What is the difference between a Sicav and an OEIC?

∎ No tax is levied on the fund – all tax arises in the hands of the investor. Withholding tax ∎ OEIC funds pay withholding tax on foreign dividends, levied by the country in which the dividend is paid. … ∎ SICAV funds pay withholding tax on foreign dividends, levied by the country in which the dividend is paid.

What is a Sicav SIF?

A SICAV SIF is an onshore Luxembourg investment fund. A SIF takes a collective investment approach to investor funds and applies the principle of risk diversification. … The structure can play host to a wide variety of asset types, including both traditional and alternative investment products.

What is the difference between an OEIC and a unit trust?

A subtle difference is a unit trust is governed by trust law, whereas an OEIC is governed by company law. … If you invest in a unit trust you buy units whereas if you invest in an OEIC you buy shares. The key difference is pricing. The major difference between unit trusts and OEICs is the way they’re priced.

What is a SIF Luxembourg?

The Specialised Investment Fund (SIF) is a regulated, Luxembourg-branded, investment fund vehicle for well informed, institutional and qualified investors. A SIF may take the legal form of a common fund (a mutual fund, FCP – fonds Commun de Placement)

Is an OEIC a Ucits fund?

For most practical purposes, the OEIC and SICAV structures are very similar, both offering the ability to establish umbrella companies with a number of single-priced sub-funds, and within the UCITS regime.

What does Sicav stand for?

Société d’Investissement à Capital VariableA FCP (Fonds Commun de Placement) is an open-ended mutual fund, constituted as a contractual common ownership entity without legal personality. A SICAV (Société d’Investissement à Capital Variable) is an open-ended mutual fund, constituted as an investment company which is similar to a UK OEIC.

How does a Sicav work?

How does it work? A SICAV is a public limited company whose shares are offered to the public, and whose sole purpose is to invest in securities (or other liquid financial assets), spreading investment risks and allowing investors to benefit from the results of managing their assets.

Are ucits same as mutual funds?

Unlike U.S. mutual funds, UCITS are designed to be marketed cross border, and are available far beyond the European Union. They are currently available to the vast majority of non-us retail and institutional investors.

What is taxe d abonnement?

The subscription tax (taxe d’abonnement) is a registration fee established on the negotiability of securities issued by: Undertakings for Collective Investment (UCI); … Reserved Alternative Investment Funds (RAIF); Family Wealth Management Companies (sociétés de gestion de patrimoine familial – SPF).