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Invest in Efficiency

With Lux Pay Passive Underlyings strategies, you benefit from active funds constructed on passive instruments. This approach combines the cost efficiency and transparency of index-based investing with the strategic oversight and adaptability of active portfolio management, offering a balanced and performance-oriented investment solution.

Active Management with Passive Efficiency

With Lux Pay Passive Underlyings, the expertise of active portfolio management is combined with the cost efficiency of passive instruments. This range of funds delivers broad diversification, competitive cost structures, and tax advantages, supported by proprietary algorithms and advanced quantitative models designed to identify opportunities across global markets with precision and discipline.

The advantages of Passive Underlyings

7 solutions for different profiles

Choose from seven strategies, with expected equity exposure ranging from 15% to 90¹.

Active management

Asset allocation is managed through sophisticated modeling techniques and calibrated daily to adapt to evolving market conditions.

Tax efficiency

Strategic rebalancing is structured to reduce the impact of capital gains taxation.

Lower costs

Management expenses are optimized by leveraging the efficiency of the underlying passive investment instruments.

Choose from 7portfolios with increasing exposure

With Lux Pay Passive Underlyings, you can select from seven portfolios featuring gradually increasing equity exposure, designed to match different risk profiles and investment objectives.

This approach blends the expertise of active management with the efficiency of passive instruments. The Passive Underlyings fund range offers broad diversification, optimized cost structures, and tax advantages, supported by proprietary algorithms and advanced quantitative methodologies aimed at identifying opportunities across global markets with discipline and precision.

Automatically Optimized Investment Strategy

Passive Underlyings portfolios from Lux Pay are managed through proprietary algorithms that deliver technology-driven, automated investment solutions designed for efficiency and precision.

Cost Efficiency

Benefit from a highly competitive structure with no performance fees and full transparency on portfolio composition.

Advanced Technology

Leverage sophisticated analytical models processing extensive data sets, supported by innovative programming tools to enhance decision-making.

Dedicated Quantitative Management

Investment strategies are built on in-depth quantitative analysis of up to 50 years of historical market data, combined with systematic portfolio rebalancing to maintain alignment with target allocations.

Questions? We're here to help

What does Active Management mean?

Active management seeks to outperform a reference benchmark by adopting a flexible asset allocation approach. The portfolio manager adjusts asset weights according to market outlooks and analytical insights, concentrating on sectors and securities with the strongest potential to generate above-average returns.

Lux Pay Passive Underlyings portfolios are built through the selection of appropriate instruments based on advanced quantitative analysis. They are rebalanced daily using proprietary algorithms and data-driven models, with the objective of optimizing performance for each defined risk profile across European and U.S. markets.

What are passive instruments?

Passive instruments, such as funds and ETFs, are designed to replicate the performance of a specific benchmark. Unlike actively managed products, they do not involve discretionary selection of individual securities but instead track a reference index. Because this process can be automated through structured models and technology, management costs are typically lower. Lux Pay Passive Underlyings funds are actively managed funds of funds that invest in these passive instruments. This structure combines professional asset allocation and oversight with the cost efficiency and transparency of index-based investing, creating a balanced and streamlined investment solution.

What are the tax advantages of Lux Pay passive underlyings?

Rebalancing within Lux Pay Passive Underlyings funds is carried out to preserve the selected risk and return profile. These adjustments are structured to be tax-efficient and are not subject to capital gains taxation, supporting more effective long-term portfolio management.

What are the main characteristics of an ETF?

Rather than committing your entire capital at once, a Capital Accumulation Plan (CAP) with Lux Pay enables you to invest through smaller, scheduled contributions over time. The initial installment is typically higher, followed by regular periodic payments.

You also have the flexibility to add extra contributions whenever you wish, even if they were not included in the original plan — for instance, to take advantage of favorable market opportunities or lower price levels.

How does the Saving Plan work?

ETFs, ETCs, and ETNs all fall under the broader category of Exchange Traded Products (ETPs), but they differ in structure, characteristics, and risk profile. ETF (Exchange Traded Fund) ETFs are a specific type of UCITS that have two main features: they are traded on a stock exchange like ordinary shares, and their investment objective can be either to replicate a reference index (benchmark) through passive management or to pursue returns through active management. ETN (Exchange Traded Note) / ETC (Exchange Traded Commodity) ETNs and ETCs are derivative financial instruments issued by a special purpose vehicle (SPV). Their value is based on the issuer’s direct investment in the underlying asset — such as stocks, bonds, currencies, single indices, or interest rates — or in related derivative contracts. Unlike ETFs, ETNs and ETCs are debt securities without a fixed maturity date and are not classified as UCITS. The price of an ETN or ETC is directly or indirectly tied to the performance of its underlying asset. The distinction between the two lies solely in the type of underlying: when the underlying asset is a commodity, the instrument is an ETC; in all other cases, it is an ETN. In summary, while UCITS (such as ETFs) are collective investment schemes that can be actively or passively managed, ETCs and ETNs provide more targeted exposure to specific assets or indices.