We mentioned some introductory notions on the undertaking for collective investment in transferable securities (“UCITS” - commonly known in French as organismes de placement collectif en valeurs mobilières - OPCVM) funds. We’ll now turn to the eligible assets for this type of structure.

As previously touched on, this undertaking must invest its assets in:

financial liquid assets; and
transferable securities (valeurs mobilières).

These include:

transferable securities admitted on a regulated market;
units of other certain types of UCITS;
special money market instruments.
cash; and
financial derivative instruments.

It is also important to remember that the law requires a specific risk diversification policy.

Finally, UCITS cannot acquire either precious metals or certificates representing them or act as a loan originator.

References: Article 2(2); 3; 41(1)(a)(b)(d)(e)(g), (2)(b) of the amended law of 17 December 2010 relating to undertakings for collective investment; How to Set up a UCITS Fund, Luxembourg for Finance, January 2019.

*Podcast #304:

What Are the Eligible Assets (UCITS)? #304-293* *Article #304-293* *YouTube Video 293* . . . . . . . . #ImpactFinance , #ServeAndThrive , #lawyer , #ThriveAndAccomplishYourMission , #MariauxAvocats , #ImpactInvesting , #SocialImpact , #impact , #ImpactSocial , #SocEnt , #MissionDriven , #MissionDrivenVenture , #EU , #DFI , #SocialVentureCapital , #AssetManagement , #sustainability , #AlternativeInvestment , #SustainableFinance , #ResponsibleInvestment , #ResponsibleFinance , #domiciliation , #UCITS Any content published on MariauxAvocats.com does not constitute legal advice.

*YouTube Video 293|:

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)