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Protected Cell Concept

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HomeServicesProtected Cell Concept

Fund Platforms offering independent Fund Compartments

We offer investment fund managers the possibility to create their own dedicated fund compartment or sub-fund. The ‘protected cell concept’ is an innovative and flexible solution for investment fund managers who seek to create their own regulated investment vehicle, following an independent investment strategy, without the need to incorporate a complex stand-alone fund structure. Luxembourg Fund Partners provides sub-funds with the same risk management, compliance, administration and management services than the respective stand-alone structure (UCITS or SIF).

By way of derogation from the Luxembourg Civil Code, the rights of investors and creditors of a compartment, which have arisen with the creation, operation or liquidation of a compartment, are limited to the assets of that compartment. This corresponds to the ‘protected cell concept’ – i.e. the segregation of assets and liabilities on a single compartment.

Investors may purchase shares or units in compartments which have different investment policies, segregated assets and accounting records. Investors may, if permitted by the constitutional document or issuing document, ‘switch’ all or part of their investment from one compartment to another, in principle without incurring significant charges. Initiators may consequently retain within the same UCITS or SIF structure those investors who wish to change their investment strategy.

We offer initiators fund compartments within our white-labelled UCITS or SIF Platforms.

UCITS Platform

The ‘protected cell concept’: Specific Segregation rules for Undertakings for Collective Investments in Transferable Securities (UCITS)  

We provide a cost efficient and quick set-up of dedicated UCITS fund compartments. A UCITS Platform can comprise two or more compartments respectively sub-funds; each compartment being considered as a single legal entity. Normally, every sub-fund demonstrates different features and follows an independent and distinct investment policy. Thus each fund compartment is allowed to invest in different asset classes – for example one sub-fund may invest in real estate, while the other one undertakes investments into listed stocks.

SIF Platform

The “protected cell concept”: Specific Segregation rules for Specialised Investment Fund (SIF)  

The protected cell principle is the same for Specialised Investment Funds (SIF’s) than for UCITS. Specialised Investment Funds with multiple compartments are single legal entities comprising two or more compartments (sub-funds), each presenting different features — generally following a different investment policy such that different compartments may invest into different asset classes.