Dedicated Internal Fund (FID)
A Dedicated Internal Fund (FID) is a tailor-made investment structure integrated into a Luxembourg life insurance contract. It is intended for investors seeking personalized portfolio management. This page explains concretely how an FID works and in which cases it represents a relevant solution.
What is a Dedicated Internal Fund (FID)?
A Dedicated Internal Fund is an internal investment fund created specifically for a single policyholder within a Luxembourg life insurance contract. The investment strategy is defined in advance and managed under a dedicated mandate.
Key points:
Created for a single policyholder
Personalized investment strategy
Management governed by a defined mandate
Integrated into a life insurance structure
Client assets under management
Key features of a Dedicated Internal Fund
An FID offers a level of personalization that is not available in standard investment structures.
Tailor-made strategy
The investment strategy is built according to specific objectives and defined constraints.
External asset manager
Management can be delegated to a professional chosen by the policyholder.
Broad investment universe
Access to traditional and alternative assets, subject to approval.
Enhanced supervision
The structure benefits from the Luxembourg regulatory framework and supervision.
Practical functioning of a Dedicated Internal Fund
Once established, the FID operates as a dedicated portfolio, managed in accordance with the agreed mandate. Investment decisions follow predefined rules. The strategy may evolve over time if the objectives or constraints change, without calling into question the overall structure of the life insurance contract. The contracts allowing access to a Dedicated Internal Fund are presented in our…
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What this means in concrete terms
The use of a Dedicated Internal Fund has concrete implications in terms of portfolio management.
In concrete terms:
Increased control over the investment strategy
Possibility to appoint a specific asset manager
Mandate adaptable over time
Integration within a protective insurance framework
Comparison of the FID with other management methods
Self-directed management
Allocation managed by the investor within standard fund lists.
Allocation managed by the investor within standard fund lists.
Personalized management governed by a dedicated mandate.
Specialized Insurance Fund (FAS)
Advanced structures adapted to complex and alternative assets.
Who is a Dedicated Internal Fund intended for?
Typically relevant for:
- Individuals with significant wealth
- Investors with complex portfolios
- Families requiring tailor-made strategies
- Investors seeking delegated professional management
Structure sur mesure
Designed around specific objectives.
Gestion professionnelle
Delegation to qualified asset managers.
Regulated framework
Supervision ensured by Luxembourg law.