A New Era in Wealth Management: Discover the Innovative FIC
An Innovative Internal Collective Fund in Wealth Management
A new Internal Collective Fund (FIC) is entering the wealth management arena, providing a contemporary alternative to traditional French SCPIs under the protective and tax-efficient umbrella of life insurance at Afi-Esca. This offering stands out due to its unique strategy that employs a diversified array of custom-built structured products, which ensure capital protection, generate regular income, and maintain asset liquidity.
AFI ESCA Luxembourg is a notable life insurance company established through the merger of AFI Vie and ESCA in 2014. Being part of the Burrus family group, known for a century of presence in finance and insurance within Europe, it has built a solid reputation over time. The company provides an extensive array of savings, pension, and capitalization solutions aimed at both local and international clients, maintaining a substantial presence in neighboring countries and reinforcing its commitment to quality service.
AFI ESCA Luxembourg distinguishes itself with its tailored approach, prioritizing customer relationships and displaying a remarkable financial strength. It primarily serves high-net-worth individuals who seek adaptable solutions for wealth management and inheritance transfers, benefitting from the stability associated with the Burrus group.
Transforming Traditional Wealth Approaches
In light of declining property values and limited liquidity plaguing SCPIs, this structured FIC proposes a completely uncorrelated investment model compared to tangible real estate. The fund exclusively invests in structured products from top-tier financial institutions, whose robust creditworthiness and solid financial standing are carefully vetted.
Operational Mechanics of the FIC
This FIC functions as a structured fund of funds, seamlessly integrated into a life insurance contract based in Luxembourg. The core operations are detailed as follows:
- It focuses on a diversified array of custom-designed structured products, aimed at delivering consistent returns with built-in capital protection.
- Each structured product aspires to achieve a conditional coupon, typically linked to the performance of a curated basket of equities or indices, designed with optimized thresholds.
- The received coupons, distributed monthly or quarterly, can either serve as regular income for investors or be reinvested within the contract.
- A permanent liquidity feature of 10% enables partial or complete withdrawals at any time, circumventing the need for a secondary market.
- The life insurance contract, managed by Afi-Esca, provides a robust legal framework, international tax neutrality, and effective wealth portability advantages.
A Tripartite Strategy Emphasizing Security, Yield, and Liquidity
This fund is built on a triad of fundamental objectives:
- Capital protection: This ensures downside risk limitations during market downturns, bolstered by sophisticated protective mechanisms and multi-thematic diversification efforts.
- Targeted annual yield of 7%: The fund aims to deliver this quarterly yield through expertly constructed structured products.
- Liquidity reserves: A 10% cash reserve offers flexible capital access when needed whilst adhering to a favorable tax policy.
The Elite Framework of Luxembourg Life Insurance
Available exclusively through Afi-Esca, the FIC enjoys several standout features including:
- The Triangle of Security, which guarantees strict asset segregation and protection for investors.
- International tax neutrality that suits cross-border clients, including expatriates.
- Flexible inheritance planning options tailored to modern estate strategies.
The fund's custodian, Intesa Sanpaolo WM, represents the Luxembourg branch of the Eurozone's largest bank. This partnership symbolizes reliability and transparency. The fund is operated by a skilled team well-versed in structured financial engineering and risk-averse investment strategies.
A Shift in Wealth Management Paradigms
Targeting high-net-worth individuals and professional investors, this FIC symbolizes the evolution of secure, income-generating, and easily accessible investment solutions. It captures the essence of modern wealth management methodologies—adaptable to current challenges, such as fluctuating market conditions, increasing tax obligations, the necessity for regular income, alongside capital protection and flexibility.
"This FIC stands as a genuine alternative to SCPIs—engineered to safeguard capital, yield tangible returns, and offer plentiful flexibility within a meticulously structured tax framework. It marks a significant progression in contemporary wealth management," states Alexandre Gabovich, Executive Director of Structured Products at Makor Group.
For Further Inquiries
If you wish to delve deeper into this FIC or have questions about Makor Group and its collaborations, please reach out to Alexandre Gabovich. As Executive Director of Structured Products, he oversees our global structured investment initiatives spanning across Europe, the USA, Asia, and the Middle East.
Frequently Asked Questions
What is the Internal Collective Fund (FIC)?
The Internal Collective Fund (FIC) is an alternative to traditional SCPIs, offering a strategy focused on structured products for capital protection and income generation.
Who manages the FIC?
The FIC is managed by experienced teams specializing in structured financial engineering and allocated investment strategies, ensuring reliability and transparency.
What are the investment goals of this FIC?
The primary goals include capital protection, a target annual yield of 7%, and ensuring liquidity with a 10% cash reserve.
How are the investments structured?
The fund invests in tailored structured products, designed to deliver predictable returns while incorporating mechanisms for capital protection.
What advantages does the Luxembourg life insurance provide?
The Luxembourg life insurance framework offers legal security, international tax neutrality, and flexible options for inheritance planning.
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