Collective Investment Vehicles Research Articles

Discussions on Sustainability Disclosure by Collective Investment Vehicles

Discussions on Sustainability Disclosure by Collective Investment Vehicles

Defining Collective Investment Vehicles for Tax Purposes in Developing Countries: Focus on Kenya, Mauritius, Morocco and South Africa

Investment through collective investment vehicles (CIVs) is a global trend. The domestic laws of developed countries tend to consider only domestic issues relating to CIVs. Developing countries often have no such laws. This article analyses the definition of CIVs in four developing countries: Kenya, Mauritius, Morocco and South Africa.

Ensuring Appropriate Treaty Relief for Collective Investment Vehicles

In this article, the authors examine the strong policy rationale for providing collective investment vehicles (CIVs) with effective mechanisms for claiming tax treaty relief, with special emphasis on the implications for CIVs of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative.

Developing Vehicles for Collective Investment in Real Estate in the Russian Federation

The goal of this study is to analyze trends in the development of real estate investment trusts (REITS) in Russia and to identify promising vehicles for collective investment in real estate based on the study of foreign practice of countries with a developed REIT industry. Comparative analysis of primary and secondary information on the entities of the collective investment market, the financial and stock markets of Russia, and foreign REITs were used as research methods. The findings reveal that the Russian REIT market lags far behind the world and European levels. Evaluation of REIT regulations in countries with a developed financial market shows that regulators' attention should be focused on protecting investors' rights and creating conditions for expanding collective investment vehicles.

Asia Region Funds Passport and Proposed Corporate Collective Investment Vehicles

The introduction of laws enabling the use of corporate collective investment vehicles in Australia has been long due and the surge in investments from the Asia-Pacific region has hastened the day of its adoption. Australian fund management can look forward to a more flexible system of investment more at home with the region.

Thoughts on the Potential Effects of the OECD/G20 BEPS Action Plan on Collective Investment Vehicles – Part II

In Part II of this article, the author continues his examination of the potential implications of the OECD/G20 Base Erosion and Profit Shifting initiative for collective investment vehicles.

Investing in Italian Real Estate Assets through Collective Investment Vehicles: An Overview of Tax Implications for Foreign Investors

The author provides a comprehensive analysis of the Italian tax regime for real estate investment funds and SICAFs, focusing on both the vehicles and the investors.

Thoughts on the Potential Effects of the OECD/G20 BEPS Action Plan on Collective Investment Vehicles – Part I

In Part I of this article, the author sets out his thoughts on the potential effects for Collective Investment Vehicles of the relevant Actions in the OECD/G20 Base Erosion and Profit Shifting Action Plan.

The Application of Tax Treaties to Collective Investment Vehicles: Beneficial Owner Requirement Explained?

Absent an express provision, a tax treaty applies to a CIV if, inter alia, the beneficial owner requirement is met. The CIV’s managers must have discretionary powers to manage assets on behalf of its investors; significantly, a CIV’s obligation to distribute does not preclude it from satisfying this condition. The author concludes that if a CIV has possession, use, risk and control over, as well as commingles, the dividends paid to it, it is ever more likely to be the beneficial owner of those dividends. These conclusions are based on an analysis of the OECD Model Convention and Commentary, as well as the Prévost and Velcro cases.

The Italian Tax Regime of Outbound Dividends Distributed to Foreign Investment Funds: An Analysis from a European Perspective

This article analyses the new tax regime of Italian collective investment vehicles (CIVs) introduced by Law Decree No. 225/2010, converted into law with modifications by Law No. 10/2011 to evaluate its compatibility with European law. After describing the tax treatment of dividends paid to resident and non-resident CIVs, the authors analyse the most relevant judgments of the European Court of Justice (ECJ) dealing with the discrimination provisions regulating the tax treatment of dividends received by non-resident CIVs in order to evaluate the compatibility of the domestic law provisions with European principles, as interpreted by the ECJ. In the last part of the article, the authors examine whether such principles may be extended to third countries situations and if so, under what conditions a restriction of the fundamental freedoms granted by the Treaty may be denounced by CIVs established in non-Member States.

Application of Tax Treaties on Cross-border Collective Investment Vehicles: Specifically on Private Equity Funds in the form of Limited Partnership

Application of Tax Treaties on Cross-border Collective Investment Vehicles: Specifically on Private Equity Funds in the form of Limited Partnership

Who Should Provide 'Liquidity Services'? Systemic Risks, Consumer Protection and Financial Regulation.

By liquidity services, we mean in this paper the whole set of key activities which permit that the final holders of financial claims may switch to cash when needed while nevertheless providing stable long term financing to companies and households. Secondary securities markets, financial institutions, collective investment vehicles and public entities, all participate in a complex way to this alchemy, sometimes in competition with each other. We stress that there is no level-playing field: this competition is heavily biased by two public distortions, i.e. the well-known unfortunate tax-bias which penalizes equity-based institutions and the refinancing backstops supplied at non-market conditions to banks by monetary authorities. These distortions contribute to the systemic vulnerability of the financial system by encouraging a complex circuit where credit risks may be driven outside an under-capitalized banking sector, while banks stay exposed to many liquidity risks. Contrary to a significant part of the literature, we see little convincing “market failures” to justify these large distortions which both penalize and subsidy different types of banking activities. In this context, reducing the maturity transformation role played by banks, either through direct regulations or hopefully following the correction of the current distortions, could make financial systems more stable. Yet, as their role should increase, we stress the importance to better regulate how collective investment funds provide, in competition with the banks, some of the liquidity required by investors. Due to “bounded rationality” and the public good nature of information, it is unlikely that investors alone can impose best practices as far as valuation and redemption policies are concerned.

News and Clarifications on the Tax Residence of Collective Investment Vehicles and on the Corporate Tax Exposure for European Investment Fund Managers

The authors comment on the new provisions introduced in Italy with regard to the tax residence of collective investment vehicles and on the positions taken by the Italian Revenue Agency in that regard, as well as with regard to the corporate tax exposure for European investment fund managers constituting collective investment vehicles under Italian law.

Performance Evaluation of Select Mutual Fund Schemes in India-A Comparative Study

Mutual funds are collective savings and investment vehicles where savings of investors are pooled together to invest for their mutual benefit and returns distributed proportionately. The objective sought to he achieved by Mutual Fund is to provide an opportunity for lower income groups to acquire good return without much difficulty. They cater mainly to the. needs of the individual investor in a manner that provides a regular income, growth, safety, liquidity and diversification opportunities. So, there is a need for the mutual fund investors to evaluate the performance of schemes before deciding on investments. Past performance is taken as reference by many investors. The present paper investigates the performance of 9 funds from three different companies for the period from April 2007 to March 2012 (five years). Yearly NAV of different schemes have been used to calculate the returns from the fund schemes. NSE-Nifty has been used for market portfolio. The historical performance of the selected schemes were evaluated on the basis ofSharpe, Treynor, and Jensen's measure whose results will be useful for investors for taking better investment decisions. The results of various statistical measures are tabulated and consolidated to get a comprehensive picture of the performance of the selected schemes.

Impact of the EU11 Financial Transaction Tax Proposal on CIVs and REITs

The author describes the impact of the financial transaction tax, as proposed under the EU11 Financial Transaction Tax Proposal, COM(2013) 71 final. on collective investment vehicles and real estate investment trusts. This article is based on a presentation delivered at the Conference “Issues and Challenges Concerning the Introduction of a Financial Transaction Tax in the European Union”, held in Madrid on 17 February 2014.

The Implementation of the AIFMD in Dutch Tax Law

In this article, the authors explain the amendments to Dutch tax law as a result of the recent implementation of the Alternative Investment Fund Managers Directive. Changes were made to the Dutch Corporate Income Tax Act, the Dutch Dividend Withholding Tax Act and the Dutch General Tax Act. Given the aim of the implemented directive, all these changes relate to investment undertakings. The authors will use the term “collective investment vehicles” in a general way; it is not a legal definition.

Dividend Withholding Tax Claims in the European Union

This article provides an overview of the current status of dividend withholding tax claims filed by collective investment vehicles, pension funds and life insurance companies throughout the European Union. In particular, the article describes the local procedure (including formalities to be complied with) when filing such claims, the time frame and the likelihood of success in the different jurisdictions covered, from the perspective of both claimants established in the European Union and claimants established in third countries.

Law of Private Investment Funds

The new edition of The Law of Private Investment Funds offers a practical analysis of the legal and regulatory issues that arise in connection with the structuring, formation, and operation of private investment funds, including hedge funds, private equity funds, real estate funds, and other non-retail collective investment vehicles. The book provides a unique analysis of these funds on a pan-asset class basis, as well as from a US, UK, and European perspective. The themes of investor protection and fiduciary challenge are considered in the context of the various sources available for investor protection including the substantive rights and obligations under general law, and voluntary and statutory rights of regulation. The author considers the various aspects of running private investment funds against the backdrop of regulation and investor protection. Issues such as structuring and launching, and marketing private investment funds are considered in full. The author also looks at the governance challenge where limited partnerships and offshore companies are concerned. The book identifies governance as a key issue for private investment fund participants and discusses in depth several ways in which managers and fund participants can improve the governance of their funds. In addition it analyses the consequences and impact of the recent global financial crisis on private funds, and the response of the US, UK, and European regulators. The new edition includes increased coverage of best practice and industry guidelines, including the ILPA Guidelines for private equity funds, and the MFA's Best Practices for hedge funds. It also provides discussion of new regulatory regimes in the US and EU, including the Dodd Frank Act and AIFMD.

Equitable Performance Fees for Hedge Funds

Hedge funds are collective investment vehicles fast becoming popular with high net worth individuals as well as institutional investors. Given an incentive structure that involves fees based on performance, this paper proposes a structure and process that is both equitable and transparent to investors. The structure involves the use of multi-portfolios giving any fund a structure similar to that of a partnership organization. The process is demonstrated using stylized examples that illustrate the equalization procedures and computations. We believe that the approach improves on current methods and meets the objectives of equity and transparency, thus improving the incentive compatibility between the fund manager and investors.

Collective Investment Vehicles

The author, in this article, considers the issues discussed at the 2011 International Fiscal Association Congress in Seminar G on collective investment vehicles.