| The introduction of a new type of investment | | | | hedge funds, real estates and shares, it will not |
| fund in Luxembourg in 2007 may be of interest | | | | offer shares to investors unless they are |
| to well informed investors and professionals within | | | | professional and well-informed. Those that have |
| the investment industry. The new Specialised | | | | been deemed acceptable candidates for SIF |
| Investment Fund (SIF) has been introduced in | | | | shares include but are not limited to institutional |
| reaction to a strong growth within the industry | | | | investors, professionals and investors that have |
| and will provide an alternative mode of | | | | proven their credentials by, for example, holding a |
| investment. | | | | valued position in a bank or management |
| The SIF is a flexible Undertaking for Collective | | | | company. |
| Investment (UCI) that provides more elasticity | | | | There are a number of restrictions and factors |
| than common UCI or SICAV. However, the SIF | | | | that must be taken into consideration when |
| will be more regulated than alternative non | | | | choosing investment schemes such as the SIF. |
| resident private funds that have been established | | | | For example, it must obtain approval for its legal |
| in foreign jurisdictions. | | | | documentation and activities from the CSSF within |
| Supervised by the Commission de Surveillance du | | | | one month of its launch. Additionally, the |
| Secteur Financier (CSSF - the financial supervisory | | | | supervision of assets and the deposit of securities |
| authority for Luxembourg), no promoter approval | | | | must be undertaken by a Luxembourg bank and |
| is required for the SIF. It is also important to | | | | the Central Administration should also be based in |
| recognise the difference between the SIF-Fund | | | | Luxembourg. |
| and the SIF-SICAV. The SIF-Fund is a fiscally | | | | The SIF must also ensure that an annual net |
| transparent fund that is held in trust by a | | | | asset value and a report are published in the six |
| Luxembourg-established management company. | | | | month period following the year-end. The |
| The SIF-SICAV, on the other hand, is fiscally non | | | | minimum capital has been set at EUR 1,250,000 |
| transparent. It could also enjoy treaty benefit and | | | | and this must be attained within one year. |
| enjoys tax exemption. | | | | However, contributions in kind are permitted. |
| To qualify for SIF-SICAV is should be | | | | The success of the principle investment of funds |
| incorporated as a Private Limited Company or | | | | is attributed as the driving force behind the |
| similar, although it is also possible to have a single | | | | Luxembourg government's decision to introduce |
| member company. | | | | the SIF and a number of well-informed investors |
| It is important to remember that, while the SIF | | | | and organisations are testing its potential for |
| can invest in any type of securities - including | | | | themselves. |