What is a private label fund?

A private label fund, also known as a white label fund, is an investment fund created and administered by a fund management company. However, the asset management (portfolio management) and distribution functions are usually delegated to another asset manager. Private label funds will usually also use the other company’s brand name.
These funds are individually designed to meet the specific needs of the asset manager and its clients. Asset managers can implement investment ideas in their own fund products.

Asset structuring is a special form of private label fund. In this case, the fund is set up individually for one or more institutions, high net worth individuals, family offices or special investor groups with specific requirements in terms of investment strategy, structure and performance.

While the well-known cross-border hubs in Europe are increasingly focusing on large market participants, Liechtenstein is successfully positioning itself in the niche of private (white label) funds. Well over 80 per cent of all funds domiciled in Liechtenstein fall into this category. This segment is also responsible for the strong growth of the Liechtenstein fund centre in recent years.