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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.
 

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