Luxembourg, the largest European investment fund centre

Over the years, Luxembourg has built and maintained its reputation as an attractive and safe fund domicile, and as a key hub for sustainable finance.

As one of the top-five asset servicers (custodian and administrator), we build long-term partnerships with our clients and endeavour to constantly support their growth. We leverage our experience and market expertise in order to provide them with innovative solutions in products and technologies.

Our local experts and services for Luxembourg funds

We are proud to be a leader in Luxembourg, the largest European investment fund centre and second largest fund centre worldwide, making it the first choice for crossborder distribution.

Our 1,000+ people support a variety of funds for your business and fund distribution all around the world. Our specialists in Luxembourg have a comprehensive expertise in administering a wide range of funds, covering private assets, traditional investments as well as liquid alternatives.

As a universal bank, we also offer a wide range of value-added services beyond the central Administration and Depositary services commonly known in Luxembourg, allowing our clients to benefit from a one-stop-shop with fully automated and integrated solutions.

Core services for Luxembourg funds

We deliver integrated solutions across the asset servicing value chain. Our clients can benefit from a full suite of fund services

• Fiduciary services and depositary bank, global custody
• Market and financing solutions (FX, passive currency overlay solutions, securities lending) for optimising clients’ risk adjusted returns
• Central administration and distribution support services
•  Investment analytics and data solutions
• Collateral management solutions.

Specific Luxembourg fund services

In a complex market environment, we can support the full range of asset classes, strategies and geographies

• Coverage of all types of funds (Undertakings for Collective Investment in Transferrable Securities  or UCITS, Reserved Alternative Investment Fund  or RAIF, European Long-Term Investment Fund or ELTIF…), asset classes and instruments (listed assets, OTC and listed financial derivatives instruments, private assets…)
• A scalable global organisation with a follow-the-sun operating model
• Comprehensive services for Management Companies (ManCos)
• Support in fund distribution with access to 80+ countries in Europe, Asia and America and connection to 5,000+ fund distributors
• Leveraging fintech partnerships to bring next-generation services around Net Asset Value (NAV) oversight and risk/ESG data management.

Diverse structuring options in the leading UCITS domicile

• Open-ended UCITS can be set up as investment companies with variable capital (Société d’Investissement à Capital Variable or SICAV) or common funds (Fonds Commun de Placement or FCP)
• Structured as a single fund with or without multiple share classes, an umbrella fund with multiple sub-funds, or master-feeder structures
• Other fund regimes may be used for traditional strategies (Specialised Investment Funds, Part II Undertakings for Collective Investment or RAIF) with certain distribution restrictions

A flexible and supportive environment for mutual funds

• Flexible use for equity funds, bond funds, mixed funds, multiple-asset class funds, money market funds or exchange-traded funds (ETFs)
• No minimum number of shareholders or unitholders
• Luxembourg UCITS can benefit from a product passport enabling them to be marketed to investors in the European Economic Area
• No withholding tax on dividends paid by Luxembourg funds
• Possibility to list shares or units on the Luxembourg stock exchange
• Preferred subscription tax rate for active ETF and money market funds

A leading domicile for sustainable finance

• The Sustainable Finance Disclosure Regulation (SFDR) and the European Taxonomy (Regulation (EU) 2020/852) requirements are applicable to Luxembourg UCITS. UCITS must include certain sustainability related information in their pre-contractual documents, websites and periodic reports. The extent of information to be disclosed is proportionate to the fund classification under SFDR.
• The Luxembourg Undertakings for Collective Investment (UCI) law foresees a reduction of the annual subscription tax if they invest a minimum of the proportion of their net assets in taxonomy-aligned activities. In order to be eligible for a reduced rate (from 0.01% to 0.04% instead of 0.05%), the portion of taxonomy-aligned assets needs to be certified by an independent auditor and an attestation must be transmitted to the tax administration.
• The Luxembourg Stock Exchange has the first dedicated platform for sustainable securities in the world, the Luxembourg Green Exchange (LGX) which already displays funds classified under Articles 8 and 9 of SFDR.
• LuxFLAG  labels around 200 financial products from asset managers in over 16 countries.

A variety of legal wrappers adapted to investor targets and investment policy

• RAIF, Specialised Investment Funds (SIF), investment companies in risk capital (Société d’investissement en capital à risque  or SICAR) and Securitisation vehicles
• Complemented by flexible company and partnerships laws

Facilitating tailored and flexible product design for private capital funds

• Open-ended, semi open-ended and closed-ended private funds may all be structured using a variety of Luxembourg legal vehicles, including Limited Partnership legal structures (common limited partnership or SCS^[3] and special limited partnership or SCSp^[4]) leaving extensive contractual freedom to partners
• Luxembourg debt funds can originate, participate, syndicate loans and accommodate all types of debt strategies including investments in secondary debt, mezzanine and distressed loans
• Possibility to adopt flexible accounting option principles including International Financial Reporting Standards (IFRS), Luxembourg Generally Accepted Accounting Principles (GAAP), US GAAPs or Limited Partnership Agreements’ bespoke requirements

A variety of fund regimes with different levels of product regulation for hedge funds

• SIFs, RAIFs, UCITS or part II Undertakings for Collective Investment (UCI)
• Complemented with flexible company and partnerships laws

Allowing for tailored and flexible product design for hedge funds

• Possibility to structure fund as single funds with or without multiple share classes, umbrella funds with multiple sub-funds, master-feeder structures
• Depending on the investment strategy and investor type, hedge funds can be structured with tailored liquidity terms
• Uses a variety of Luxembourg legal vehicles including Limited Partnership legal structures (common limited partnership or SCS^[6] and special limited partnership or SCSp^[7]), offering extensive contractual freedom to partners
• Alternative investment funds under the form of an SCSp can adopt flexible accounting option principles: IFRS, Luxembourg GAAP, US GAAPs or other accounting standards considered as equivalent to IFRS by the EU Commission.

Discover our Luxembourg market expertise in mutual funds, private capital funds and hedge funds