Finance Glossary
UCITS (Undertakings for Collective Investment in Transferable Securities)
What is a UCITS?
A UCITS (Undertaking for Collective Investment in Transferable Securities) is a collective portfolio owned by all subscribers, which is managed by a management company according to the fund's management guidelines (equity funds, bond funds, diversified, etc.). They are subject to harmonized regulation at the European level (UCITS directive) and have a "passport" that allows them to be freely marketed within the European Economic Area.
Two types of UCITS
There are two main categories of UCITS: SICAVs and FCPs.
SICAVs (Investment Companies with Variable Capital) are legal entities that issue shares. SICAVs have the status of a company with all the resulting legal obligations (General Meetings, Board of Directors, etc.).
Any subscriber to a SICAV becomes a shareholder and can express their views on the management of the company during general meetings.
Mutual funds (FCP - Fonds Communs de Placement) are co-ownerships of securities whose assets are managed by a management company on behalf of the unit holders. FCPs do not have legal personality and issue units. Their purpose is the management of a portfolio of securities.