Luxembourg-based KMG Sicav SIF has launched a platform for asset managers and advisers to create their own Sicav SIF funds, taking advantage of the regulatory structure of a Specialised In
Luxembourg-based KMG Sicav SIF has launched a platform for asset managers and advisers to create their own Sicav SIF funds, taking advantage of the regulatory structure of a Specialised Investment Fund together with the open-ended investment company vehicle that is widely used for both long-only retail funds and alternative investments.
According to the firm’s chief executive Kevin Mudd, wealth managers, financial advisors, fund managers, family offices, high net worth individuals and entrepreneurs can use the platform to establish their own Luxembourg-regulated Sicav SIF funds, which can accommodate all asset classes including hedge funds, private equity and real estate and do not carry any restrictions on leverage.
Mudd argues that this open-architecture platform offers a faster route to market, enabling funds to be established and open for capital within a few weeks rather than the months it can take for traditional retail funds.
The KMG Sicav SIF platform also promises fund promoters cost-effectiveness through economies of scale, providing all back office support, administration and other services necessary for the creation and management of a fund. Using a Luxembourg-licensed and regulated vehicle, promoters establishing Sicav SIF funds do not have to apply for additional licences.
‘Launching a Sicav SIF fund gives financial advisors and affluent investors control over their assets,’ Mudd says. ‘An IFA can become a product provider, not just a distributor. For businessmen and entrepreneurs, establishing a fund can be a highly time- and cost-effective strategy for raising capital.’
Vincent Derudder, secretary general of the Brussels-based IFA trade body Fédération Européenne des Conseils et Intermédiaires Financiers (Fecif) and a director of KMG Sicav SIF, says: ‘This is an excellent initiative for intermediaries to structure a vehicle to protect their interests and those of their clients. There are many ways in which clients would benefit, including tax efficiency, better administration, lower costs of transactions and economies of scale.’
Alan Morgan-Moodie, chairman of the Association of International Life Offices, adds: ‘It sounds like an exciting project and just what needs to happen to financial services. It should appeal to IFAs and other parties who want to get Sicav funds up and running very quickly. I can see the KMG Sicav SIF platform being hugely practical to a lot of investment professionals.’
Over a 30-year career in financial services, Mudd founded OFS International, which subsequently became Inter-Alliance WorldNet, and in 1996 he established the Private Client Portfolio Mutual Fund. He is chairman of the Cyprus International Financial Services Association and a director of Fecif.
Alongside Mudd and Derudder, the third director of KMG Sicav SIF is Richard Goddard, who has held various general management, business development and operational roles within JPMorgan Fleming and ABN Amro Asset Management. Over the past decade he has been a director of various Luxembourg-domiciled funds, including alternative investment vehicles, multi-manager products, private equity and structured funds.