A new Internal Collective Fund (FIC) is making a notable entry into the wealth management market, offering a modern alternative to traditional French SCPIs, within the secure and tax-efficient framework of Luxembourg life insurance at Afi-Esca. What sets it apart? A unique strategy based on a diversified allocation of custom-built structured products, combining capital protection, regular income, and asset liquidity.
AFI ESCA Luxembourg is a Luxembourg life insurance company founded in 2014, resulting from the merger of AFI Vie and ESCA. It is part of the Burrus family group, a historic and discreet player in insurance and finance in Europe, active for over 100 years. The company offers a comprehensive range of savings, pension, and capitalization solutions for both residents and non-residents of Luxembourg, with an equally strong presence in France and Belgium within the framework of the freedom to provide services.
AFI ESCA Luxembourg stands out for its personalized approach, customer proximity, and financial strength. It primarily targets high-net-worth clients seeking flexible solutions for wealth management and transfer, while relying on the stability and independence of the Burrus group.
Addressing the Limits of Traditional SCPIs
As SCPIs face declining property valuations and limited liquidity, this structured FIC proposes a fully uncorrelated model to physical real estate. It invests exclusively in structured products issued by top-tier financial institutions selected for their strong creditworthiness and financial solidity.
How Does It Work?
This FIC operates as a structured fund of funds, integrated into a Luxembourg life insurance contract. In practical terms:
- It invests in a diversified selection of tailor-made structured products, designed to deliver predictable returns while incorporating capital protection mechanisms.
- Each structured product targets a conditional coupon, typically linked to the performance of a basket of equities or indices, with optimized trigger thresholds.
- Coupons received (monthly or quarterly) are redistributed to investors as regular income or can be reinvested within the contract.
- A permanent 10% liquidity pocket allows partial or full redemptions at any time—without relying on a secondary market.
- The Luxembourg life insurance wrapper, managed by Afi-Esca, provides a robust legal framework, international tax neutrality, and efficient wealth portability.
A Three-Pillar Strategy: Security, Yield, Liquidity
The fund is built on three core objectives:
- Capital protection based on a combination of advanced mechanisms designed to limit downside risk in the event of market downturns, through robust protection barriers and multi-thematic diversification.
- Target annual yield of 7%, distributed quarterly, through optimized structured product construction.
- Built-in liquidity, with a 10% cash reserve ensuring flexible access to capital at all times, within a favorable tax framework.
An Elite Investment Framework: Luxembourg Life Insurance
Exclusively available with Afi-Esca, this FIC benefits from:
- The Triangle of Security, ensuring strict asset segregation and investor protection;
- International tax neutrality, ideal for cross-border clients and expatriates;
- And flexible inheritance planning, tailored for modern estate strategies.
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