This brochure provides general information on the legal and taxation aspects of regulated and un-regulated Infrastructure investment vehicles domiciled in the Grand Duchy of Luxembourg.
The Association of the Luxembourg Fund Industry (ALFI) has issued new technical guidelines regarding “Luxembourg Infrastructure Investment Vehicles” released at the occasion of the ALFI Infrastructure Funds Seminar that took place today in Luxembourg.
The document provides general information on legal and taxation aspects of regulated and un-regulated infrastructure investment vehicles domiciled in the Grand Duchy of Luxembourg.
“The choice and the structure of an Infrastructure investment vehicle depend on the type of funding to be raised, the targeted investor base, the type of investments to be made and specific tax considerations. The Luxembourg legal framework is diverse and flexible enough to fulfil the needs of a wide range of investors.” agree both co-chairmen of the ALFI Infrastructure working group, Mr Jean-Christian Six (Allen & Overy) and Mr Amaury Evrard (PricewaterhouseCoopers, Société Coopérative).
This document sets out some of the relevant considerations that need to be taken into account when contemplating Infrastructure investments but it is not intended to be a comprehensive guideline to structuring Infrastructure investments through Luxembourg. This document reflects the legal situation as at 2014.
The guidelines can be downloaded here. Members only
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Luxembourg's European and global investor base is now able to use the RQFII scheme directly to invest on the Chinese capital market.
Today, the People's Bank of China has announced the granting of a 50 bn RMB RQFII quota to Luxembourg.
The RQFII (RMB Qualified Foreign Institutional Investor) scheme was launched in Hong Kong in 2011 and has been expanded to other jurisdictions since 2013 enabling offshore RMB to be reinvested into the Mainland securities market.
Luxembourg Minister of Finance, Pierre Gramegna, said:
“The granting of the RQFII quota again demonstrates China’s recognition of the Luxembourg financial centre as one of Europe’s main hubs for international renminbi business. We are proud to play such a significant role in the process of the internationalisation of the renminbi.”
Luxembourg has made the UCITS a globally recognized brand and more than 67% of UCITS funds distributed internationally are based in Luxembourg. Luxembourg is the largest investment fund centre in the world after the US. The RQFII scheme is particularly useful for fund managers who use Luxembourg as a platform for cross-border distribution. Major international and Chinese fund promoters had already set up RQFII funds through Luxembourg domiciled vehicles, using other jurisdictions' quotas. Luxembourg's European and global investor base will now be able to use the RQFII scheme directly to invest up to 50 bn RMB on the Chinese capital market.
Together with the designation of ICBC as RMB clearing bank in Luxembourg, the RQFII quota consolidates Luxembourg’s prominent position as a leading RMB hub in Europe.
Luxembourg ranks first in Europe when it comes to RMB deposits (61,5 bn RMB), loans (61,1 bn RMB) and RMB in investment funds (296,3 bn, all figures H2 2014). The Luxembourg Stock Exchange is also the exchange with most Dim Sum bonds listed in Europe (45 in H2 2014). With a market share of 12% of global Dim Sum bond listings, it ranks third behind Hong Kong and Singapore.
Download the press release here.
Download the press release here.
The Association of the Luxembourg Fund Industry (ALFI) today publishes its statistics as at 31 March 2015.
- Luxembourg retains its position as the leading European domicile with EUR 3,524.79bn of net assets under management, growing 3.55% in the month ending 31 March 2015 and 13.89% so far in 2015
- At EUR 49.92bn, net sales in March were the highest of all times
- Net assets managed by investment funds under Luxembourg law grew by 30.10% in the past 12 months
- The number of investment funds (legal entities) is 3,888 as at 31 March 2015
- Germany remains the main initiator of funds domiciled in Luxembourg (2,812 in total), with Switzerland coming second (2,585 in total). However, funds initiated in the US and the UK have the most net assets under management (EUR 790,580m from the US, EUR 579,799m from the UK)
Marc Saluzzi, Chairman of ALFI, comments: “The low interest rate environment is obviously a decisive factor in the sustained growth of assets under management by the investment fund industry”.
He adds: “The exceptionally high net sales that we are registering in Luxembourg are the best proof of the continuous confidence of the international investor in the Luxembourg investment fund product. Equally, the diversified geographical origin of fund promoters in Luxembourg demonstrates that our fund centre remains the domicile of choice for the international asset management community.”
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Download the document here.