Welcome! Luxembourg investment funds are offered in many countries around the world. Hong Kong is one of the most important Asian sales markets, and fund units can be bought from a number of sources. ALFI would like to assist you by providing some explanations, notes and links to important sources of information in Hong Kong and Luxembourg on the following topics related to investment funds:
- Supervisory authorities
- Associations of investment funds
- Funds and fund management companies
- Information on funds and investing
- Funds and taxes
- Funds and retirement
A supervisory authority is a government organisation which exercises oversight over institutions under private law or other state-owned institutions. It accordingly has power to issue instructions to these institutions. Below you will find the names, contact addresses and other information on the supervisory agencies responsible for oversight of the investment fund business in Luxembourg and Hong Kong.
CSSF – Commission de Surveillance du Secteur Financier
The CSSF is responsible for overseeing market operators in the Luxembourg financial market sector, such as Luxembourg banks, investment funds, pension funds, securities dealers and other professionals in the financial market sector. Its goals are due compliance with regulatory requirements by market operators, stability of the financial market, oversight of the quality of the organisations and their internal control systems, and the strengthening risk management.
There is extensive information on the regulatory environment, market statistics and investor protection on the CSSF's website in French and English. If you have problems with a company, you also have the option of contacting the authority directly.
110, route d`Arlon
SFC – Hong Kong Securities and Futures Commission
The Securities and Futures Commission (SFC) was set up in 1989 as the single statutory securities market regulator. After which the Exchange of the Central Clearing and Settlement System (CCASS) was created in 1992 and the Automatic Order Matching and Execution System (AMS) in 1993.
While ensuring effective market regulation, market rules and regulations have been under constant review and revision ever since in order to meet the market needs.
Supervision of investment funds and fund management companies comes under the supervision of the SFC.
For you as a consumer, the SFC website provides extensive information on financial issues, companies and investing, as well as answers to the most frequently asked questions.
Securities and Futures Commission
8th Floor, Charter House
8 Connaught Road Central
Tel: +852 2840 9222
Fax: +852 2521 7836
or complaints +852 2840 9222
email@example.com (For general enquiries, comments and suggestions)
InvestEd@sfc.hk (For investor enquiries)
firstname.lastname@example.org (For complaints against market misconduct or intermediaries)
email@example.com (For licensing-related enquiries)
Associations of investment funds are the trade organisations of the investment industry. Members of national organisations are generally fund management companies, asset managers or investment funds themselves. Many organisations also admit service providers in the fund industry, such as chartered accountants, law firms or custodian banks. A central goal of the associations is to promote the idea of investing in investment funds in society. Their websites provide a wide range of information relating to the fund industry. Below you will find the names, contact addresses and information about the associations in Luxembourg and Hong Kong.
ALFI – Association of the Luxembourg Fund Industry
ALFI was formed in 1988 and represents the Luxembourg fund industry. Besides investment funds and fund management companies, membership is also open to service providers in the fund industry, custodian banks, law firms, chartered accountants, etc. The goal of the association's activities is to position Luxembourg as the most attractive international centre for investment funds. The website contains information on regulatory issues, publications and statistics on the Luxembourg and European fund market. The Investor Centre also offers basic information on investing in funds for inexperienced investors.
HKIFA – The Hong Kong Investment Funds Association
The Hong Kong Investment Funds Association (“HKIFA”) is a non-profitmaking professional body that represents the investment management industry in Hong Kong.
Established in 1986, HKIFA promotes investment products managed in Hong Kong, educates the public about the usage of funds for financial planning purposes; and acts as the representative and consulting body in all dealings with the government and the regulation of unit trusts, mutual funds, retirement funds and other funds of a similar nature.
1505 Tak Shing House
20 Des Voeux Road Central
Tel: +852 2537 9912
Fax: +852 2877 8827
Fund management companies
So, you are looking for a fund management company? You will find a list of non-exhaustive licensed investment companies at the following URLs.
- www.finesti.com (English, French)
The HKIFA publishes a list of its members which includes about 70-80% of the active fund managers registered in Hong Kong.
In Luxembourg, the official list of authorized management companies is published on the CSSF website:
Funds search engine
So, you are looking for an investment fund? The following pages list fund search engines.
Basic principles of fund business
The HKIFA has an informative Chinese and English languages brochure on "Investing in funds" entitled “Fund Investment: Your Questions Answered”.The brochure relates the reasons for investing and provides opportunities and risks as well as information on mutual funds and fund management. It also contains further extensive fund knowledge such as the type and level of fees associated with the purchase of a share of investment fund or explanation over distribution channels.
Types of funds
Retail funds are divided into different kinds, e.g. money market, balanced, bonds and stocks funds. In the following article, the goal of the most common types of funds is described:
You can also consult the list of authorized products by the SFC following this link:
Buying fund units
Investors can buy units in various ways. Any fund management company can give you information.
As far as buying funds in Hong Kong is concerned, HKIFA relates the various distribution channels you may find in the city. Please refer to page 12 onwards.
Also, the Investment Company Institute published a detailed paper on Mutual Fund Distribution Channels and Distribution Costs which you may find interesting:
There are no capital gains taxes, with holding taxes, interest taxes, sales tax & VAT in Hong Kong.
In recent years, private pension schemes have become a central issue. There are various types of scheme, some of which are subsidised by the government.
Besides some statutory pensions or provident funds, the major retirement scheme in place in Hong Kong is the Mandatory Provident Funds (MPF) system. Established by legislation, the MPF system is a retirement protection system for the entire working population of Hong Kong. Mandatory contributions are calculated on the basis of 10% of an employee's relevant income, with the employer and employee each paying 5%. Contributions are generally made on a monthly basis.
GovHK published a range of information about the MPF System, from how it works to the obligations of employers and employees.
The Mandatory Provident Fund Schemes Authority (MPFA) provides a full range of information and publication relating to MPF:
The HKIFA website gives also an overview of the various retirement pension concepts.
The SFC provides detailed explanation on how to complain against market activities or intermediaries and how to file your complaint efficiently. This letter can be lodged online, by post, fax or phone.
- Getting started in Mutual Funds (Alvin D. Hall; John Wiley & Sons; 2011)
- Mutual Funds for Dummies (Eric Tyson; John Wiley & Sons; 2010)
- Companion to Mutual Funds (John Haslem; John Wiley & Sons; 2010)
- The Financial Times Guide to Investing: The Definitive Companion to Investment and the Financial Markets (Glen Arnold, Financial Times/Prentice Hall, 2009)
- Morningstar Guide to Mutual Funds: Five Star Strategies for Success (Christine Benz; John Wiley & Sons; 2007)
- Fundology: The Secrets of Successful Fund Investing (John Chatfeild-Roberts; Harriman House Publishing; 2006)
You can find explanations of the terms used in the fund industry at the following websites: