Umbrella fund
Encyclopedia
An umbrella fund is an investment term used to describe a collective investment scheme
Collective investment scheme
A collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group...

 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
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...

 industry, most notably with the SICAV
SICAV
A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium and France...

 (an open ended collective investment). The SICAV
SICAV
A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium and France...

 model was copied for the UK OEIC and offshore fund
Offshore fund
An offshore fund is a collective investment scheme domiciled in an Offshore Financial Centre such as the British Virgin Islands, Luxembourg, or the Cayman Islands; it is typically sold exclusively to 'foreign' investors...

 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

  • Collective investment scheme
    Collective investment scheme
    A collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group...

    s
  • Investment management
    Investment management
    Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...

  • SICAV
    SICAV
    A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium and France...

  • OEIC
  • Mutual fund
    Mutual fund
    A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...

    s


Other umbrella terms
  • Umbrella brand
    Umbrella brand
    An umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity....

  • Umbrella term
    Umbrella term
    An umbrella term is a word that provides a superset or grouping of concepts that all fall under a single common category. Umbrella term is also called a hypernym. For example, cryptology is an umbrella term that encompasses cryptography and cryptanalysis, among other fields...

  • Umbrella organization
    Umbrella organization
    An umbrella organization is an association of institutions, who work together formally to coordinate activities or pool resources. In business, political, or other environments, one group, the umbrella organization, provides resources and often an identity to the smaller organizations...

  • Umbrella school
    Umbrella school
    An umbrella school is an alternative education school which serves to oversee the homeschooling of children to fulfil government educational requirements....

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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