UCITSfond

UCITS fund (Undertakings for the Collective Investment in Transferable Securities) is a type of investment fund established in the European Union to enable retail investors to access diversified portfolios across member states under harmonized rules. UCITS funds are open-ended, pooling capital from investors to buy a portfolio of transferable securities and related assets, with units or shares sold to investors and price determined by net asset value.

A UCITS fund is usually structured and managed by a licensed management company and requires a depositary/custodian to safeguard assets and oversee cash flows. Funds must comply with eligibility and diversification rules and implement a documented risk-management framework. The direct restrictions on leverage and asset concentration, plus liquidity and valuation standards, are designed to protect investors.

Regulation is provided by the UCITS directive and related regulatory texts, which converge across EU member states. Once a fund is authorized in one member state, it can be marketed to retail investors across the EU under the UCITS passport. Periodic reporting, disclosure in a standardised format such as a Key Investor Information Document, and ongoing oversight by national competent authorities apply.

Investors typically benefit from daily dealing, redemption at net asset value, and a high level of transparency. UCITS funds cover a range of strategies and structures, including equity, fixed-income, money market, and mixed funds, as well as UCITS-compliant exchange-traded funds and index funds.

Compared with non-UCITS alternative investment funds, UCITS funds are generally more standardized and retail-oriented, with stricter diversification, liquidity, and reporting requirements.