A SICAV is a

collective investment scheme An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages inc ...

common in Western Europe, especially

Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...

Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...

Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...

Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...

Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...

Malta Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

, and the

Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...

. SICAV is an acronym in

French French (french: français(e), link=no) may refer to: * Something of, from, or related to France ** French language, which originated in France, and its various dialects and accents ** French people, a nation and ethnic group identified with Franc ...

for ''société d'investissement à capital variable'', which can be translated as 'investment company with variable capital'. It is similar to an open-ended

mutual fund A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV i ...

in the United States, while a ''sociedad de inversión de capital fijo'' or ''société d'investissement à capital fixe'' ( SICAF) is similar to a

closed-end fund A closed-end fund (CEF) is a fund that raises capital by issuing a fixed number of shares which are not redeemable, and then invest that capital in financial assets such as stocks and bonds. Unlike open-end funds, new shares in a closed-end fund ...

. As in the case of other open-end collective investment schemes (such as contractual funds), the investor is in principle entitled at all times to request the redemption of their units and payment of the redemption amount in cash. SICAVs are increasingly being cross-border marketed in the EU under the

UCITS The Undertakings for Collective Investment in Transferable Securities Directive (UCITS2009/65/ECis a consolidated EU directive that allows collective investment schemes to operate freely throughout the EU on the basis of a single authorisation fro ...

directive.

SICAV names in various languages

Czech Czech may refer to: * Anything from or related to the Czech Republic, a country in Europe ** Czech language ** Czechs, the people of the area ** Czech culture ** Czech cuisine * One of three mythical brothers, Lech, Czech, and Rus' Places *Czech, ...

''akciová společnost s proměnným základním kapitálem'' *

Dutch Dutch commonly refers to: * Something of, from, or related to the Netherlands * Dutch people () * Dutch language () Dutch may also refer to: Places * Dutch, West Virginia, a community in the United States * Pennsylvania Dutch Country People E ...

''Beleggingsvennootschap met veranderlijk kapitaal'' *

German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...

''Investmentgesellschaft mit variablem Kapital'' *

Italian Italian(s) may refer to: * Anything of, from, or related to the people of Italy over the centuries ** Italians, an ethnic group or simply a citizen of the Italian Republic or Italian Kingdom ** Italian language, a Romance language *** Regional Ita ...

''società d'investimento a capitale variabile'' *

Spanish Spanish might refer to: * Items from or related to Spain: **Spaniards are a nation and ethnic group indigenous to Spain **Spanish language, spoken in Spain and many Latin American countries **Spanish cuisine Other places * Spanish, Ontario, Cana ...

''sociedad de inversión de capital variable''

SICAV/Open-end Collective Investment in Switzerland

According to the Swiss Federal Act on Collective Investment Schemes (Collective Investment Schemes Act - CISA), an open-ended collective investment scheme may be in the form of a contractual fund or an investment company with variable capital (SICAV). With open-ended collective investment schemes, investors have either a direct or indirect legal entitlement, at the expense of the collective assets, to redeem their units at the

net asset value Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds. Shares of such funds registered with the U.S. Securities and Exch ...

. Each open-ended collective investment scheme has its own fund regulations (often referred to also as prospectus). Contractual funds are regulated by the collective investment contract (e. g., fund contract). In SICAVs, it is the articles of association and the investment regulations.

SICAVs in Spain

, a SICAV is a

public limited company A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth of Nations, Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company ...

whose object is to invest in financial assets. SICAVs have great

tax advantage Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free. Examples of tax-advantaged accounts and investments include retirement plans, education saving ...

s, paying corporate income tax (

corporation tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at ...

) at a rate of just 1%. Nonetheless, they have to fulfill several requirements: * Number of stockholders no fewer than 100. * Restrictions on investments. * Capital may vary between the minimum and maximum established by the

articles of association In corporate governance, a company's articles of association (AoA, called articles of incorporation in some jurisdictions) is a document which, along with the memorandum of association (in cases where it exists) form the company's constituti ...

. * Minimum capital of €2,400,000. * Oversight and supervision is carried out by the

Comisión Nacional del Mercado de Valores The National Securities Market Commission () (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of E ...

and the Dirección General del Tesoro y Política Financiera. In the Basque Country and

Navarre Navarre (; es, Navarra ; eu, Nafarroa ), officially the Chartered Community of Navarre ( es, Comunidad Foral de Navarra, links=no ; eu, Nafarroako Foru Komunitatea, links=no ), is a foral autonomous community and province in northern Spain, ...

, the autonomous regional tax authorities have raised the corporate income tax for SICAVs to that of the rest of corporations (up to 28%). As a result, the Basque and Navarrese SICAVs have changed their sites to the rest of Spain or the European Union.
Así se pasa de 200 a 0 sicav: País Vasco muestra el camino a Navarra
', Pedro Calvo, 7 November 2015,

El Confidencial ''El Confidencial'' is a Spanish-language general-information digital newspaper located in Spain, specializing in economic, financial and political news. It was established as an online newspaper in 2001. Its target readership is professional ...

References

* M. P. Gentili, S. Jannoni, M. Mastrangelo, ''The SICAVs — Luxembourg UCITS and non-UCITS investment companies'', Bancaria Editrice - Roma, 2011
{{Investment-management Investment funds

SICAV names in various languages

SICAV/Open-end Collective Investment in Switzerland

SICAVs in Spain

See also

References