Luxembourg collective investment undertakings: legal regime and characteristics in brief – Finance and Banking

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means Organisms for Collective Investment in Transferable Securities and refers to investment funds which have been set up in accordance with the provisions of the amended Luxembourg law of December 17, 2010 transposing European Directive 2009/65 / EC (“UCI Law“). UCITS benefit from a European passport insofar as, once authorized by the Luxembourg supervisory authority, they can, according to a standardized notification procedure, be sold to the public in all the other Member States of the EU UCITS also benefit from registration facilities with the authorities of many non-EU member states which recognize the UCITS label and the investor protection regime it entails. UCITS can be marketed, UCITS are subject to specific rules regarding the assets in which they can invest and the diversification and concentration rules that they must comply with, which aim to ensure appropriate liquidity of the investment portfolio. of the UCITS allowing investors to redeem their units at least twice a month.


refers to collective investment undertakings governed by Part II of the Law on UCIs, which are not qualified as UCITS either because of their investment policy or because of the rules applicable to the distribution of their units / shares . Although Part II funds can be sold to the public, they do not have access to the UCITS passport. They will however benefit from the AIFMD passport.1under certain conditions. They are subject to the permanent supervision of the Luxembourg supervisory authority (“CSSF”). However, they have greater flexibility as to the type of assets in which they can invest, the investment strategies they can implement, the diversification rules to which they are subject and the liquidity they offer. to investors.


means Specialized investment funds organized under the amended Luxembourg law of 13 February 2007 (“SIF Law”). SIFs are reserved for so-called informed investors, that is to say essentially institutional investors, professional investors and investors subscribing for a minimum amount of 125,000 euros. They are subject to permanent control by the CSSF. Due to the sophistication of their investors, they benefit from a fairly flexible regime. Among other things, SIFs must invest according to the principles of risk spreading but also have complete flexibility as to the type of assets in which they invest and the strategies they employ. Like Part II funds, they will also benefit from the AIFMD passport under certain conditions.


means Venture Capital Investment Companies governed by the amended Luxembourg law of June 15, 2004 (“SICAR law“). SICARs operate under a regime adapted to private equity / risk capital investments, including a tax treatment different from that applicable to UCITS, Part II Funds and SICs. SICARs are not required to operate according to The risk principle They are reserved for informed investors and are subject to the control of the CSSF in the same way as the SICARs. SICARs will also benefit, under certain conditions, from the AIFMD passport.


means Securitization Vehicles organized under the amended Luxembourg law of 22 March 2004 on securitization (“Security Act 2004They may be used in certain circumstances as an alternative to the investment vehicles mentioned above or as a complement to the investment structure, depending in particular on the objectives of the operation and the way in which it is structured. Securitization vehicles can be offered to any type of investor, but those which issue securities to the public on a continuous basis come under the supervision of the CSSF. SV will not be subject to the AIFMD regime when it qualifies as “entities”. ad hoc securitization ”as defined therein2.

A new securitization regime that reflects the requirements of Regulation (EU) 2017/2402 on securitizations (“RS“) is applicable since January 1, 2019. Three different securitization regimes are therefore available in Luxembourg: (i) the general SR regime for all securitizations that meet the criteria set out in the definition of securitization provided in the SR, ( ii) the specific regime The SR regime provided for securitizations qualified as simple, transparent and standardized (STS) securitizations under the SR, and (iii) the Luxembourg securitization regime for securitizations other than (i) and (ii).


means Reserved Alternative Investment Funds governed by Luxembourg law of 23 July 2016 (“RAIF lawIts regime is based on the SIF regime with the important exception that the RAIF is not subject to the approval or supervision of the CSSF as a product, which makes it an attractive vehicle from the point of view of time-to-market. on the other hand, the RAIF must designate an approved AIFM, thus benefiting from the AIFMD passport as well as the protection of the AIFMD framework.


Limited partnerships refer to a category of investment vehicles which are governed by the amended Luxembourg law of 10 August 1915 on commercial companies (“Law on companies”). They are not supervised by the CSSF and can therefore be formed very quickly. These vehicles are used for their flexibility and characterized by contractual freedom in their structuring, like the well-known Anglo-Saxon model of limited partnerships. Limited partnerships also offer a competitive tax environment and can benefit from the AIFMD passport in certain circumstances. Limited partnerships can be used to set up investment vehicles within the framework of specific sectoral laws such as the SIF law, the SICAR law or the RAIF law. As such, all the flexibilities offered by these legal forms (the main characteristics of which are detailed in the following tables) are also available for a limited partnership qualified as SIF, SICAR or RAIF (provided that these sectoral laws do not derogate from them). not specifically from there).


1. The AIFMD passport refers to the EU passport introduced by Directive 2011/61 / EU on alternative investment fund managers (“AIFM“) for the marketing of alternative investment funds (“FIA“) professional investors in the EU, as implemented in Luxembourg domestic law.

2. Special purpose securitization entities are defined in Article 4 (a) of the AIFMD.

3. “Limited partnership“refers to the limited partnership(limited partnership) and the special limited partnership (special limited partnership)

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Investing in sport versus traditional investment vehicles

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The Thrilla in Manila‘The fight of the century, as it was called, pitted two world boxing giants in Manila, Philippines, in 1975. Joe Frazier was looking to topple Muhammed Ali and claim the heavyweight title. Muhammed Ali seeking to win what many saw as the decision maker between the two. The hype and animosity between the two was at its height, especially since Muhammed Ali, as usual, had tried to break Frazier’s calm and anger him by calling him a gorilla, and had even offered an insulting taunt. “It’ll be a killa and a thrilla and a chilla when I get the Gorilla in Manila.”

What ensued was fourteen long sets of guts-hammering chaos, halfway through the fight Ali is supposed to have told his trainer “Dude, this is the closest I’ve ever been to dying. . A feeling shared by the “smoker” Joe Frazier who fought blindly in the thirteenth round. At the end of the brutal fourteenth round, Frazier’s coach Edie Futch stepped in and ended the fight, unbeknownst to Frazier’s corner at the end of the same round, Ali asked his corner men to cut off his gloves, but his trainer ignored him, handing the victory over to Ali. Ali will later tell his biographer Thomas Hauser, “Frazier quit right before me, I didn’t think I could fight anymore.”

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Neither would ever be the same again.

So how much would you pay to own the boxing gloves worn by Ali or Frazier that day. What would be its value to a collector today? – ‘Invaluable. ‘

A funny word which, the priceless term tends to come into play when the historical or sentimental value of an object far outweighs its intrinsic value. An object whose value really resides in the eyes of the beholder.

Priceless memories

Sports memorabilia fall into this category. A jersey worn by Magic Johnson, a baseball signed Roger Clemens, a helmet initialed by Marino, all of these generally evoke a sense of nostalgia in us, reminding us of a youth spent worshiping the titans of the playing field, and our dreams of imitate and / or even surpass their prowess. Most of us would remember collecting baseball cards or trying to get autographs, leaning over the parapet or down the stairs trying to get our favorite’s attention. as he strode down like the colossus they seemed to us.

Most of us would grow up and come out of this phase of our life, and without a burst of nostalgia, we would continue our daily pedantic life. Every once in a while we may stumble upon an item that is owned and lovingly displayed in a friend’s house, or more likely stumble upon an article like this and curiosity may prompt us to read it by wondering if the sport icon listed in the text is something we would covet. – If the latter, you have my apologies because I won’t really mention any particular item of collector’s value.

However, I recently got into a conversation going on around this topic, as is my habit when an idea creeps into my head; I needed to know more, so I started looking.

The first thing I learned was that there are two types of people who buy sports memorabilia: the collector and the investor.

Two aspects to memories

The collector – As the term suggests, collects for nostalgic reasons, he was the one who grew up idolizing the heroes of the arena, and even as a child he was probably a lot more passionate and serious about his collection than the Joe average – we all knew someone like that. The whole sports memorabilia industry thrives on the collector. The value of any sports memorabilia depends entirely on it, it is on the whims and fancies of the collector that the industry lives or dies. Of course, there is no singular representative here that can dictate to other collectors. Each collector has their own niche that they are passionate about. Collectors can also be fiercely competitive, after all, there are more than 200 million of them spread around the world. Every sport, from baseball to baccarat, has its share of collectors.

Investor – This is the person who, without being disconnected from the love of the game, is probably not the one who would pass out on a home run hit by Jackie Robinson. According to Brandon Steiner, Founder and CEO of Steiner Sports Marketing “You can’t have any emotional connection to this stuff,” Steiner says. To a collector Steiner would say, “Buy with your heart. Buy something you like and assume its value isn’t going to increase. To an investor, his advice: “Don’t do what I just said.

Investing in souvenirs versus traditional investment vehicles

It’s tricky, they have some common characteristics in that you have to know which ones to invest in and you have to do your due diligence while choosing what you hope to be a winner. Although sports memorabilia appreciate over time, they hardly compare to traditional vehicles when it comes to consistency. The value of sports memorabilia depends on several factors, the popularity of the player, the rarity of similar items and the condition of the memorabilia themselves. Apart from that, the economy also comes into play; a bad economy usually doesn’t have too many takers. In short, this is only recommended for the person who has money lying around and who is ready to wait a certain time.


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To concern:

Souvenir Guide

Choose a niche

Decide what type of collection you want, choose a sport or theme to build your collection around rather than picking up a random set of items from different sports or athletes, this would help make your collection, as a whole, more valuable. Pick an athlete like Tiger Woods or Derek Jeter or a specific team like the New York Yankees to follow. Do your research; treat this as you would any other investment.

Follow the stars

The more popular the athlete, the better the value down the line. You might think that lesser-known faces would be valuable as few collectors would choose them, unfortunately that will also be true ten or fifteen years from now. Going with the classics is always a safe bet.

New condition is all that matters

Make sure the souvenirs you buy are in pristine condition, the difference between a scuffed baseball card and one in mint condition can be on the order of magnitude. In case of memorabilia that has been used in a game (always preferable), it is imperative that you keep them as is – treat them as you would a museum piece.

Laws of supply and demand

Obviously, the rarer the availability of a similar item, the higher the value. A used batting game, for example, would generally always be better than a baseball.

It also explains why ‘vintage is wonderful’, although it can be macabre, once a player has passed away, the value of any merchandise that bears their mark will appreciate more quickly as no new items of this type will be released. never available.

Note: Beware of the dead cat bounce, this is where the value of a recently deceased athlete’s memorabilia increases due to sudden demand, it usually settles after a period, leaving those buyers a little less well off (generally).

Authenticate it

There is a plethora of fake memorabilia on the market, ranging from autographed baseball cards to replica jerseys; they are all available with sellers waiting for someone looking for an “too good to be true” deal. Investing in a Certificate of Authenticity from reputable and reliable agencies like PSA / DNA, Upper Deck, Becket and JSA, is well worth the cost.

Don’t overlook the feel good factor

Finally, investing in sports memorabilia is great fun, not only can it be a good investment, but unlike securities or stocks, it comes with a feel-good factor. Imagine what it would be like to hold a bat once used by Hank Aaron or slip your hands into gloves used by Mike Tyson. Even as it grows in value, it has the ability to give the owner intangible returns of happiness, pride, and a good after-dinner story for guests.


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Thanks for reading my post. I write regularly about opportunities and trends in the private market. If you’d like to read my regular posts, feel free to also connect on LinkedIn, Twitter, or through Atlanta Capital Group Investment Management.

Greg Silberman is the Chief Investment Officer of ACG Investment Management LLC (“ACGIM”). ACGIM specializes in creating personalized private market solutions for RIA / Family Office clients.

This document is not intended to be construed as forecasting, research or investment advice, and does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt an investment strategy. The views and strategies described may not be suitable for all investors. It is not possible to invest directly in an index. An index fund is a type of mutual fund with a portfolio built to match or track the constituents of an index. Past performance is no guarantee of future results. Investments fluctuate and when redeemed may be worth more or less than when they were originally invested. Advisory services offered by ACG Investment Management, LLC. ACG Investment Management is a subsidiary of ACG Wealth Inc.



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