UCI Legal Structures

2.1 Key Vocabulary

Master these terms before diving into the structures — they appear throughout the Lux guide

2.2 Principal Regulations

The 2010 Law is the backbone — six other laws and EU regulations fill in the gaps

2.3.1 Basic Legal Forms: FCP vs SICAV vs SICAF

Every Luxembourg UCI is contractual (FCP) or corporate (SICAV/SICAF) — the choice drives governance, liability, and tax

2.3.2 Umbrella Funds (Multiple Compartment UCIs)

One legal umbrella, multiple ring-fenced sub-funds — the dominant Luxembourg architecture

2.3.3 Share & Unit Classes

Multiple classes within one compartment — same investment pool, different economic and structural terms

2.3.4 Master-Feeder Structures

Feeder invests ≥85% into a single master — centralising portfolio management across multiple fund wrappers

2.3.4 Co-Management & Pooling

Pooling assets across compartments or umbrellas to reduce costs and improve diversification

2.3.5 Cross-Investment (Compartment-to-Compartment)

One compartment investing into another within the same umbrella — allowed under strict conditions

2.3.6 Side Pockets

Segregating illiquid or problematic assets from the main portfolio — only for genuine exceptional circumstances

2.4 Regime-Specific Requirements

UCITS, Part II, SIF, RAIF, and ELTIF — each has distinct investor eligibility, CSSF oversight, and structural rules

2.5 Minimum Net Assets (Size Thresholds)

Every Luxembourg fund regime has a minimum net asset requirement — timing and amount vary by regime

2.6 Special UCI Types

MMFs, ETFs, hedge funds, real estate, private equity — each overlay adds specific requirements

2.7 Sub-Structures: SOPARFIs & Securitization Vehicles

AIFs commonly hold assets through Luxembourg holding companies (SOPARFIs) or securitization vehicles