Päärahastot

Päärahastot, often translated as "main funds" or "parent funds," refers to the primary investment pools within a larger fund structure, such as a fund of funds or a master-feeder fund. These are the core entities where the majority of the assets are held and actively managed. In a fund of funds structure, päärahastot are the underlying investment funds that the fund of funds manager selects and invests in. The fund of funds itself is a separate entity that allocates its capital across these päärahastot, aiming to diversify risk and achieve specific investment objectives.

In a master-feeder structure, feeder funds (which collect capital from investors) invest all their assets into a single master fund, which is the päärahasto. The master fund then carries out all the trading and investment activities. This structure is often used to achieve economies of scale, reduce administrative costs, and simplify trading operations. The performance of the feeder funds is directly tied to the performance of the päärahasto they invest in. Understanding the role of päärahastot is crucial for investors to comprehend the underlying investment strategy and the flow of assets within complex fund arrangements.