Let me give my European and African readers some information about their investment schemes. 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. It is similar to an open-ended mutual fund in the United States, while a sociedad de inversión de capital fijo or société d'investissement à capital fixe (SICAF) is similar to a closed-end fund. As in the case of other open-end collective investment schemes such as contractual funds, the investor is in principle entitled at all times to request the redemption of his units and payment of the redemption amount in cash.
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.
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. A SICAV is an open-ended collective investment scheme common in Western Europe especially Luxembourg, Switzerland, Italy, Spain, Belgium and France. SICAVs are increasingly being cross-border marketed in the European Union (EU) under the UCITS directive. Throughout Europe approximately €6.8 trillion are invested in collective investments. Of these funds about 76% are UCITS.
As I have found out, it is very hard to invest in investments in European and African Countries without investing in stock certificates. In the future, UCITS will make it easier world wide to invest in many European and African Managed Funds.
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