Undertakings for Collective Investments in Transferable Securities

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'Undertakings for Collective Investment in Transferable Securities' (or UCITS, pronounced yoo-sits) are a set of European Union directives that aim to allow collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state. In practice many EU member nations have imposed additional regulatory requirements that have impeded free operation with the effect of protecting local asset managers.

A collective investment fund may apply for UCITS status in order to allow EU-wide marketing. The concept is to create a single market in transferable securities across the EU. With a larger market the economies of scale will reduce costs for investment managers which can be passed on to consumers.

Throughout Europe approximately €5 trillion are invested in collective investments. Of these funds about 70% are UCITS. (Source: euractiv - 2005)

v • d • e Investment management Collective investment scheme structures Common contractual fund • Fond commun de placement • Investment trust • Unit trust • Mutual fund • ICVC • SICAV • Unit Investment Trust • Exchange-traded fund • Offshore fund • Unitised insurance fund Investment Styles Active or Passive management • Value or Growth investing • Hedge fund • Socially responsible investing • Fund of funds • Manager of managers • Index fund Theory & Terminology Efficient market hypothesis • Net asset value • Open-end(ed) fund • Closed-end(ed) fund Related Topics List of asset management firms • Umbrella fund • UCITS

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