Two years ago, The Guardian Multi Family Office initiated a Sicav fund in the Grand-Duchy of Luxembourg. We took this step because my colleagues and I had seen the significant benefits this investment structure holds for both asset managers and clients.
It’s a way to access investment products and speciality funds that are often the domain of large institutions and investors. It also holds operational, cost, flexibility and risk management advantages.
This article focuses on some of the advantages of the general structure, as well as benefits specific to The Guardian Sicav.
PLEASE NOTE: This article is the opinion of the author, Maurizio Piglia, and is not intended as financial advice. You should always seek independent advice, tailored to your unique situation and objectives, before investing.
Access to institutional quality products
A Sicav structure provides an accessible route to world-class investment products. Even those buying a small part of a portfolio gain access to a wide variety of instruments and markets – that often wouldn’t be available to them otherwise.
The Guardian Sicav portfolios are flexibly managed and not limited by geography, economic sector or currency. In addition, The Guardian Sicav makes these opportunities available to clients in any geography. A Sicav is a European structure, regulated by European Union Directives 2014/91/EC (UCITS V) and 2009/65/EC (UCITS IV) on Undertakings for Collective Investments in Transferable Securities (UCITS). But the Guardian Sicav is able to offer the benefits of the fund’s investments and its structure to both Europe-based clients and those outside the EU, respecting all local regulatory Laws and prescriptions.
The EU directives governing the Sicav structure build in certain levels of diversification. By investing in this type of fund, your clients automatically diversify their investments across different vehicles – reducing their risk.
Another advantage of a Sicav is the large amount of flexibility the structure can offer asset managers.
The Guardian Sicav gives you particular flexibility. Asset managers are offered our white label service: you can create your own named sub-funds and tailor these to your clients’ specific strategies and risk profiles. You are able to create your own sub-fund within the Sicav and gain complete autonomy for your clients’ portfolios and total separation from other funds, if you have a modicum of a critical mass.
The Sicav structure also allows investors to buy and sell easily – you can offer daily liquidity to your clients.
The other good news for asset managers is that much of the time and cost associated with the administration of funds can be eliminated when your clients invest in a Sicav. For example, reduced brokerage commissions can achieve significant economies of scale – and you are able to reduce fees to clients while also retaining a greater portion of the fund management and distribution fee.
Asset protection and autonomy for asset managers
In a Sicav structure investor risk is minimised, not just through diversification of the portfolio but because the assets of individual sub-funds are legally separate.
The Guardian Sicav has been designed in such a way that your clients’ assets will remain protected, due to the investment mandate within the EU Directive 2014/91/EC (UCITS V) rules. When you create your own sub-fund using our white label service, you gain complete autonomy over your clients’ portfolios and total separation from other funds.
More about The Guardian Sicav
The Guardian Sicav was initiated by The Guardian Multi Family Office Ltd and SELECTRA MANAGEMENT COMPANY S.A. is its management company. It is authorised for distribution in Luxembourg and is incorporated as a Société Anonyme, qualifiying as a UCITS under the law of 17 December 2010.
To discover more about its sub-funds:, the Guardian Shield Dynamic Fund, Guardian Mistral Value Fund and Guardian Market Neutral Fund, contact us.
For all matters relating to depositary functions, remuneration policies and sanctions, The Guardian Sicav is subject to the provisions of Part I of the 2010 Law, specific to UCITS as defined in UCITS V, amending UCITS IV.
The Guardian Sicav’s global fund centre is Luxembourg. Luxembourg was selected for: its strong culture of investor protection and rigorous anti-money laundering policies; its political and fiscal stability; its long tradition of financial expertise; and its understanding of the needs of an international clientele.
Integrity of The Guardian Sicav
The appointment of highly regarded management company, SELECTRA, demonstrates the integrity of The Guardian Sicav. SELECTRA operates a strict Anti-Money Laundering and Countering Financing of Terrorism programme. This ensures that every fund applicant has thoroughly vetted its customers.