Luxembourg further increases the appeal of its fund center

The following two exemptions from the annual subscription tax (taxe d'abonnement) will, without a doubt, attract additional investment fund promoters to Luxembourg: as from the fiscal year 2010 onwards, an exemption will impact both UCIs and specialized investment funds (SIFs) which either invest at least 50% of their assets in one or several microfinance institutions or benefit from the microfinance label from the Luxembourg Fund Labelling Agency. a draft legislation has, as from 1 January 2011 onwards, proposed that there be also an exemption for Exchange Traded Funds (ETFs). These measures demonstrate the clear willingness of the Luxembourg government to strengthen Luxembourg's position as the largest fund domicile in Europe and a worldwide leader in cross-border distribution of funds.