The various available investment vehicles
Text version of the infographic:
The Luxembourg unit-linked life insurance policy offers a high degree of freedom in the choice of assets thanks to a clear, progressive and flexible approach.
All these investments vehicles are available in the contract:
- External funds: an external fund is a collective investment undertaking set up outside the insurance company and subject to authorisation and regulatory procedures by a state appointed supervisory authority. (Example: Undertaking for Collective Investment in Transferable Securities (UCITS), Investment funds, etc.). External funds allow:
- Diversity of managers;
- Diversity of risk classes;
- Diversity of geographic areas:
- Internal collective funds: a collection of assets, segregated from an insurance company, with or without a performance guarantee, and open to multiple subscribers. An internal collective fund allows:
- Standardised and simplified management of the underlying assets;
- Distribution and subscription standardised;
- Creation by the partner of a simple, standard, personalised management envelope.
- Dedicated internal fund: a dedicated fund without a guaranteed return which serves as the investment vehicle for a single policy, the management of which is outsourced to a professional asset manager. A dedicated internal fund allows:
- Diversity in the choice of the different stakeholders;
- Broad range of underlying assets, depending on the amounts invested;
- Discretionary management.
- Specialised Insurance Fund: a dedicated fund without a guaranteed return which serves as the investment vehicle for a single policy, which is managed directly by the subscriber (assisted by his advisor). A specialised insurance fund allows:
- The choice of assets is made by the policyholder;
- Great freedom in choice of assets.
A Luxembourg unit-linked life insurance policy makes it possible to hold all these different investment vehicles, depending on the amounts invested.