Foreign Portfolio Investment (FPI) in LuxembourgUpdated on Thursday 13th April 2017
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A Foreign Portfolio Investment (FPI) in Luxembourg designates a manner through which foreign investors can hold securities and other similar financial assets. However, such assets may not be under the direct ownership of the foreign investors. Through the FPI, the foreign businessmen interested in opening an investment fund in Luxembourg may purchase various types of financial assets, such as bonds or shares and our team of financial experts can provide assistance on the procedure and on the requirements businessmen should meet.
FPI in Luxembourg – main purpose
Foreign Porfolio Investment (FPI) is similar to Foreign Direct Investment (FDI). However, there is a major difference between the two forms of investments - the FPI will not allow the investors to obtain a business interest in a foreign country, such as Luxembourg, as oppossed to FDI.
One of the main advantages provided to the investors through the FPI refers to the fact that they can obtain a rapid return on investment and our team of financial representatives can offer further details upon the manner in which this aspect can be performed.
FPI refers to the fact that the investors can benefit from minority rights deriving from the following:
Differences between FPI and FDI
Those who want to open a fund or who are planning to perform an investment related to private equity in Luxembourg should know that the FPI and FDI have a set of differences, given by the following:
• amount of the investment;
• control over the investment;
• the duration of the investment;
• risks associated with these structures.
Businessmen who are currently seeking a suitable investment field in Luxembourg must know that, if they intent to perform short term investments here, they should choose the advantages provided by the FPI, as it is generally used for business purposes of shorter periods of time, compared to the FDI.
FPI can provide numerous advantages and it is necessary to mention that the investments carried out through it will be handled through the Luxembourg Stock Exchange.
Businessmen are invited to contact our financial consultants for more details on the advantages provided under the foreign portfolio investment.