LLB Fund Services AG is an important earnings pillar having growth potential for the LLB Group. As a member of the Executive Board of the Liechtenstein Investment Fund Association, it actively participates in shaping the business conditions for the Liechtenstein fund centre, which in turn is supervised by the Liechtenstein Financial Market Authority (FMA) – a body recognised throughout the EU.
LLB Fund Services AG offers a comprehensive array of services including fund management, fund administration, risk management and custodian services for traditional and alternative funds. In total, Fund Services had assets under management at the end of the year under report of CHF 11.1 billion.
As an “all-in-one shop”, our client advisers can call on a wealth of experience. Fund Services sets up made-to-measure funds both in-house and for independent asset managers, family offices and other fund promoters, which it structures and administers, as well as ensuring state-of-the-art risk management.
LLB as a custodian bank
At the end of 2016, LLB was serving as a custodian bank for around 220 investment funds. As a pioneer in exercising the function of a custodian bank for external funds in Liechtenstein, LLB has acknowledged experience and years of expertise in the management and administration of complex fund mandates having various strategies and investment categories.
LLB Fund Services AG implements made-to-measure structuring solutions for independent asset managers and other fund promoters such as family offices. It has made a name for itself as a specialist particularly in the field of private labelling. Private label funds bear the name desired by the client and are structured according to his requirements under Liechtenstein or EU law. Private label fund solutions are very individual and are ideally suited for efficient asset management as well as structuring alternatives for large volumes of assets. They offer the same investor protection as with public funds.
EU passport for alternative investment funds
With a share of 0.34 percent of the fund market, Liechtenstein is one of Europe’s fund boutiques offering made-to-measure fund solutions, short approval periods and EU compatibility. Having access to the EU market is of vital importance for the competitiveness of the Liechtenstein fund centre.
Since October 2016, Liechtenstein alternative investment funds (AIF) and alternative investment fund managers (AIFM) have unrestricted access to the 28 EU and EEA / EFTA states. The incorporation of the AIFM directive in EEA treaty entitles the managers of alternative investment funds to conduct cross-border management and distribution activities aimed at professional investors (see chapter “Regulatory framework and developments”). LLB Fund Services has possessed a license to manage alternative investment funds since June 2015.
The new fund law, which came into effect in October 2016, complements the UCITSG (2011) and AIFMG (2013) legislation based on European law. Above all, the new fund law regulates the special business model existing in Liechtenstein of funds for single investors, families, interest groups or corporate structures.
Liechtenstein / Switzerland withholding tax
The new double taxation agreement between Liechtenstein and Switzerland came into effect in January 2017. As a result of the agreement, LLB fund clients resident in a country which has a double taxation agreement with Switzerland now enjoy new tax refund possibilities. This leads to new, interesting asset structuring possibilities with the asset classes equities Switzerland and bonds CHF with Swiss issuers.