Feeder UCITS meaning

Asset Management & Investment Funds—EU & International Developments-July 2025 ESMA advice to the European Commission on UCITS Eligible Assets The European Securities and Markets Authority (ESMA) has delivered technical advice to the Commission on updating the UCITS Eligible Assets Directive, highlighting the need for harmonised rules across the EU. The EAD, an implementing directive, sets out which assets a UCITS may invest in. If taken forward, the amendments would materially reshape the UCITS fund landscape. Core proposals include a look through methodology to assess the eligibility of underlying assets for exposures obtained via delta-one instruments, derivatives on financial indices, and closed-ended funds. ESMA also proposes limiting indirect exposure to alternative assets to 10% of a UCITS portfolio; any higher exposure should instead be managed under the AIFMD framework. For more information, see our publication. ESMA thematic note on clear, fair, and not misleading sustainability-related claims ESMA has released a thematic note offering guidance for market participants on making sustainability-related claims, with a particular emphasis on ESG...

This Practice Note outlines the principal features of Directive 2009/65/EC, as amended (Undertakings for Collective Investment in Transferable Securities (UCITS) Directive), including the UCITS regulatory framework, the authorisation process, operating UCITS on a cross-border basis, UCITS management companies, master-feeder structures, depositaries, remuneration, and investment information... What is a UCITS fund? UCITS funds are authorised open-ended investment vehicles that can be marketed to retail investors throughout the EU, provided they comply with, for example, the Directive’s rules on diversification and eligible investments. EEA UCITS funds must be both managed and domiciled within the EEA... Definition and requirements of a UCITS fund Article 1 of Directive 2009/65/EC (the UCITS Directive) defines a UCITS as an undertaking that has: the sole purpose of collective investment in transferable securities or certain other liquid financial assets using capital raised from the public, operating on the principle of risk-spreading; and units which, at the request of holders, are repurchased or redeemed, directly or indirectly, out of the undertaking’s...

This Practice Note examines key aspects of the UK UCITS regulatory regime, covering the authorisation process, UK UCITS management companies, master–feeder structures, depositaries, remuneration, investment information, and UK implementation and areas of UK divergence following the UK’s withdrawal from the EU. What is the UCITS Directive and what is a UCITS fund? Within the EU, the UCITS Directive—also known as UCITS IV (Directive 2009/65/EC)—replaced the original UCITS Directive in 2011 (Directive (EEC) 85/611). The objective of the initial UCITS Directive was to build a single market for open-ended retail investment funds, offering improved investor protection. The final text of UCITS IV was published in the Official Journal of the EU (the OJ) on 17 November 2009, with EU Member States required to implement it by 1 July 2011. UCITS funds are authorised open-ended investment funds that may be marketed to retail investors across the EU, provided they satisfy the Directive’s conditions, for example on diversification and permitted investments. EEA UCITS funds must be managed and domiciled within the...