An
umbrella fund is an investment term used to describe a
collective investment schemeA collective investment scheme is a way of investing money with others to participate in a wider range of investments than feasible for most individual investors, and to share the costs and benefits of doing so....
which is a single legal entity but has several distinct
sub-funds which in effect are traded as individual investment funds.
Discussion
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An
umbrella fund is an investment term used to describe a
collective investment schemeA collective investment scheme is a way of investing money with others to participate in a wider range of investments than feasible for most individual investors, and to share the costs and benefits of doing so....
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 managementInvestment management is the professional management of various securities and assets , to meet specified investment goals for the benefit of the investors...
industry, most notably with the
SICAVA 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
SICAVA 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 fundAn offshore fund is a collective investment scheme domiciled in an Offshore Financial Centre, for example British Virgin Islands, Luxembourg, Cayman Islands or Dublin. For the purposes of the Income and Corporation Taxes Act 1988 of the UK, an offshore fund is one which is governed by the Offshore...
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
A collective investment scheme is a way of investing money with others to participate in a wider range of investments than feasible for most individual investors, and to share the costs and benefits of doing so....
s
- Investment management
Investment management is the professional management of various securities and assets , to meet specified investment goals for the benefit of the investors...
- 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
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis...
s
Other umbrella terms
- 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
An umbrella term is a word that provides a superset or grouping of related concepts, also called a hypernym.
For example, cryptology is an umbrella term that encompasses cryptography and cryptanalysis, among other fields.
...
- 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
An umbrella school is an alternative education school which serves to oversee the homeschooling of children to fulfil government educational requirements....