UCTIS

Since 1985, the European Undertakings for Collective Investment in Transferable Securities (UCITS) directive has provided a common set of rules for the cross-border distribution of collective investment schemes that strive to ensure investor protection.

UCITS funds must be open-ended and liquid and can be used for a wide range of strategies and asset classes. Exchange Traded Funds (ETFs) and Money Market Funds (MMFs) are almost always established at UCITS funds.

UCITS funds can be set up as a single fund or as an umbrella fund that is comprised of several sub-funds, each with a different investment objective and policy. Each sub-fund is treated as a separate entity, with the assets and liabilities segregated from other sub-funds within the umbrella UCITS fund. Management of each sub-fund can be performed by a different investment manager and sub-funds are permitted to invest in each other, subject to certain investment restrictions.