Occasional Paper: Austrian Spezialfonds: Tailor-Made Investment Vehicles for Institutional and Private Investors
The Austrian Spezialfonds provides institutional and larger private investors an attractive, tax-optimized asset management vehicle that is exempt from UCITS and other capital market regulations – while maintaining basic protections under the Investment Fund Law – as an alternative to public funds, which are heavily regulated by EU and national law for the protection of small investors.
A limited group of investors (not exceeding 10 investors or investor representatives) can establish a Spezialfonds by private contract with the issuing investment company (or bank) and depositary/custodian, privately determining key aspects of fund operations including appointment of asset managers and setting disclosure requirements.
