Umbrella fund

An umbrella fund is a collective investment scheme that exists as a single legal entity but has several distinct sub-funds which, in effect, are traded as individual investment funds.[1] In UK law, the concept is defined in Section 756B of the Finance Act 2004[2] and is central to the structuring, taxation and regulation of small funds, especially the ones under the Appointed Representative regime.

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 Open-ended investment company (OEIC) and offshore fund models.[3]

  1. ^ "IFM02140 - Authorised investment funds (AIFs): structure, arrangement and tax status of funds: umbrella funds or companies - HMRC internal manual - GOV.UK". HMRC. Retrieved 2024-05-03.
  2. ^ "Treatment of umbrella funds and funds comprising more than one class of interest". Finance Act 2004. Retrieved 2024-05-05.
  3. ^ Cite error: The named reference Lussan2012 was invoked but never defined (see the help page).