The SICAV model

One appeal of the SICAV as a collective investment vehicle is that it can be distinguished from contractual funds in terms of corporate governance, making it a worthwhile alternative.

Main differences between a SICAV and contractual funds:

  • A SICAV is a legal entity
  • The shareholder-entrepreneur holds liability for and influence over the management of the SICAV
  • The Board of Directors is the “face” of the SICAV
  • The Board of Directors watches over the interests of the SICAV’s investors
  • The Management and the Depositary Bank are the investor’s counterparties in a contractual fund, whereas they are only service providers for a SICAV

In general, and particularly in terms of the investment policy and restrictions, the rules are the same for both a SICAV and a contractual fund.