As previously described, a fund set up under Part II of the amended law of 17 December 2010 relating to undertakings for collective investment (a “UCI Part II Fund”) may take the form of either an open or closed ended:
common contractual fund (fonds commun de placement - “FCP”);
investment company with variable capital (société d’investissement à capital variable - “SICAV”) or fixed capital (société d’investissement à capital fixe - “SICAF”).
An FCP must be managed by a management company. The management company shall draw up the management regulations for the common funds.
The SICAV/SICAF has the choice to be self-managed or to have a management company. If the SICAV/SICAF is self-managed, whereby its board of directors or the general partner is entrusted with the functions usually devoted to a management company (risk management, portfolio management etc.), it can only manage assets of its own portfolio. It is therefore not possible for a self-managed SICAV/SICAF to manage the assets of a third-party.
References: Article 13(1) of the amended law of 17 December 2010 relating to undertakings for collective investment; How to set up a UCI Part II Fund, Luxembourg for Finance, January 2019; Which Legal Forms May Take a UCI Part II Fund? October 11, 2020, Bertrand Mariaux.
*Podcast #300:
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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)