An umbrella fund
is an investment term used to describe a collective investment scheme
which is a single legal entity but has several distinct sub-funds
which in effect are traded as individual investment funds
This type of arrangement originated in the European investment management industry, most notably with the SICAV (an open ended collective investment). The SICAV model was copied for the UK OEIC and offshore fund models.
The umbrella fund structure makes it cheaper for investors to move from one sub-fund to another and save the investment manager
costs relating to regulatory duplication.