May 4, 2020

What about investment funds in Luxembourg ?



A pioneer in the implementation of European fund regulation, Luxembourg has played a pivotal role in opening up markets for international fund distribution and providing European private and institutional clients with access to international investments.


Luxembourg domiciled investment funds are spread over 70 countries, with a particular focus on Europe, Asia, Latin America and the Middle East and the world’s leading asset managers have chosen the Grand Duchy as the centre for their ranges of international funds. 


The country is equally attractive for investors looking for alternative funds or more traditional UCITS due to structural factors such as its political, economic and regulatory stability, its extensive ecosystem of experts, its modern infrastructure and the ongoing collaboration between the asset management industry and its key players.


Luxembourg is a prime location for private equity and venture capital, hedge funds and real estate funds. It is the favoured domicile for Undertakings for Collective Investment in Transferable Securities (UCITS), the only truly global fund product in the world, offering the highest possible levels of investor protection.


Alternative funds are able to tailor their solutions for clients and financial professionals alike here by combining characteristics from various jurisdictions. Thanks to its Limited partnership regime, the needs of clients from both common law and civil law based jurisdictions can be accommodated.


Insurance for investment funds.


For comprehensive coverage, for Investment funds and their managers, including the General Partners, BUREAU SCHNEIDER ASSURANCES recommends the " Fund Protector" solution from AIG which covers both managerial liability and entity protection.


It provides comprehensive cover for a range of risks including allegations of mismanagement, investment related errors and omissions, breach of fiduciary duties and statutory responsibilities.


Another advantage is that the policy covers claims worldwide except in countries where specific international sanctions are in place. Insured persons and entities can enjoy an extended notification period at no extra cost.


The "Fund Protector" product covers Directors Liability including board membership in external entities and provides Professional Indemnity Insurance covering the liability of the Fund as a legal entity.


A major advantage of BUREAU SCHNEIDER ASSURANCES is the possibility to insure the net asset value of the fund anywhere in the world, via Luxembourg.


Numerous extensions are also available, so please do not hesitate to contact the team of professionals at BUREAU SCHNEIDER ASSURANCES.