Undertakings for Collective Investment in Transferable Securities
The UCITS (Undertaking for Collective Investment in Transferable Securities) is the globally recognized brand for retail investment funds.
The UCITS regime is renowned for traditional products, such as equity, bond, money market and mixed funds, but may also be used to create funds of such funds, master-feeder structures, exchange traded funds, structured funds and some alternative types of funds.
With over US$2.5 trillion of assets in UCITS investment funds, Luxembourg is the No. 1 global center and distribution hub for UCITS. Luxembourg UCITS assets represent a third of all European UCITS assets.
“As the World’s No. 1 location for investment funds, Luxembourg innovates and engages to ensure it continues to offer ‘best-in-class’ solutions for the ever evolving needs of the asset management industry.” Michael Ferguson
Managers and initiators set up UCITS primarily because they can be distributed relatively easily to all types of investors – both retail and institutional – in most key distribution markets. Investors recognize and demand “UCITS brand” products, mainly because they are EU regulated.
Luxembourg UCITS represent approximately three quarters of internationally distributed products, and over 90% of products distributed in some markets. Luxembourg UCITS are registered for distribution to investors in countries outside the EU, particularly in Africa, Asia, the Middle East and South America.
Managers and initiators also choose to set up UCITS in Luxembourg to benefit from its advantages such as reputation, regulatory environment, stability, ability to achieve tax neutrality, service providers and location.
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