Umbrella fund

Umbrella fund

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.

Advantages

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.

See also

References


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