UCI (Undertaking for Collective Investment)

What is an UCI?

A UCI (Undertaking for Collective Investment) is a collective financial vehicle that involves investing the capital that banks or management companies collect from the public in various markets such as equities, bonds, money markets, or real estate.

Les differents types d'OPC

Among general-purpose investment funds, UCITS and AIFs are distinguished.

UCITS (Undertakings for Collective Investment in Transferable Securities) are subject to harmonized regulation at the European level (UCITS directive). Two main categories make up UCITS: SICAVs and FCPs. The first has the status of a company with all the resulting legal obligations (General Meeting, Board of Directors, etc.), and the second can be likened to a simple co-ownership of securities.

AIFs (Alternative Investment Funds) originate from the implementation (transposition) of the AIFM directive into French law. AIFs themselves are classified into different clearly identifiable categories:

• AIFs open to all (with a general purpose or more specialized such as private equity funds FCPR, FCPI, FIP, real estate funds OPCI / SCPI, or alternative fund of funds);  
• AIFs particularly intended for professional investors;  
• employee savings funds (FCPE and former SICAVAS) as well as securitization entities.

Classification of UCI

The AMF defines a classification of UCIs that is representative of the risk borne by investors and the actual exposure of the UCI to certain markets.

• French stocks,  
• Stocks from Eurozone countries,  
• Stocks from European Community countries,  
• International stocks,  
• Bonds and other debt securities denominated in euros,  
• International bonds and other debt securities,  
• Short-term money market,  
• Money market,  
• Formula funds,  
• Diversified.

The "Diversified" classification was removed as of December 31, 2017, following the public consultation on the elimination of the AMF "classifications" for collective investment schemes. The "Diversified" classification was considered by stakeholders to be difficult to understand and potentially confusing. Indeed, it does not necessarily reflect a diversification of assets or risks, contrary to what its title might suggest. Results of the consultation are available on the AMF website.

How to subscribe to a mutual fund?

UCI are offered by distributors (banking networks, banks and online brokers, financial investment advisors, etc.). You can buy and hold UCI shares within various schemes:

• a securities account, 
• an Equity Savings Plan, 
• a life insurance contract, 
• a Retirement Savings Plan,

To buy or sell units of mutual funds, you must indicate the number of units you wish to buy or sell to your financial intermediary.

The purchase or sale price of a unit of an OPC is determined by the net asset value and the fees published by the management company.

Before investing, choose your UCI based on your objectives, risk tolerance, and investment horizons, and carefully read the Key Information Document (KID) to ensure you fully understand the investment strategy presented.