Undertakings for the Collective Investment in Transferable Securities (UCITS) is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and promotion of mutual funds.
The UCITS passport enables managers or promoters to launch a single EEA fund solution rather than having to establish the same fund on a jurisdiction-by-jurisdiction basis. While the funds are regulated in Europe, buyers from all over the world can invest in UCITS funds too.
Why UCITS?
- The UCITS framework means that the segregation of duties between administrator, custodian, and investment manager is legally instituted.
- Investor friendly liquidation and diversification requirements.
- Attractive tax treatment of UCITS funds.
- UCITS funds can be sold to any investor.
- The UCITS brand is strong within Europe, Asian and South America and can be distributed for sale across numerous countries given the tried and test regulation.
As UCITS Funds are the most protected, have great liquidity for the investor, NEBA will only recommend these Funds as part of a balanced portfolio.
