Knowledge Base
Identify different types of collective investment instruments such as UCITS and AIFs
Which European directive defines the characteristics of a UCITS?
Directive 2009/65/EC, also known as UCITS, defines the characteristics of UCITS. A UCITS must collect savings from the public for investment in a diversified portfolio of transferable securities, be managed by an authorised professional, and allow the subscription or redemption of units at any time at their net asset value.
Which document allows systematic verification of a fund's status as a UCITS in France?
The register of authorised UCIs maintained by the AMF allows verification of a fund's status. This register contains the list of funds compliant with the UCITS directive and authorised by the AMF, which is a reliable method for identifying a UCITS.
What is the exclusive legal form of UCITS in France according to Article L214-4 of the Code monétaire et financier?
UCITS in France can take two exclusive legal forms: the SICAV (public limited company or simplified joint-stock company) and the FCP (mutual fund). The SICAV has legal personality and investors are shareholders with voting rights, while the FCP is a co-ownership without legal personality.
What is a distinguishing criterion of AIFs compared to UCITS?
AIFs are distinguished from UCITS by their ability to invest in assets not eligible for UCITS, such as real estate or private equity. This characteristic is essential for identifying an AIF as it falls outside the strict framework of diversified transferable securities applicable to UCITS.
UCITS under the UCITS directive
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A UCITS is a collective investment scheme with three cumulative characteristics: collecting public savings for investment in a diversified portfolio of transferable securities, management by an authorised professional, and the ability to subscribe or redeem units at any time at their net asset value.
An ISIN code can be used to systematically identify a collective investment instrument.
The ISIN code is a unique identifier for financial instruments. It enables systematic identification as it is used in professional databases to classify funds by type (UCITS or AIF). However, it should be used in conjunction with other methods for precise identification.
An AIF can be marketed without restriction to the general public.
AIFs are often reserved for qualified investors due to their restricted marketing regime. Only certain AIFs such as FIVG or public OPCI can be open to non-professional investors, but this is not the general rule.