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Briefing - Financial Services Group (ETF Eligibility), December 2008

  • The proliferation of exchange-traded funds (“ETFs”) established in the US and in recent times in Europe and their increasing popularity in the current volatile stock market environment has meant that they are frequently considered as a possible asset class for investment by other funds. The purpose of this article is to consider how an ETF is categorised for eligibility for investment by a UCITS fund and, as explained below, this depends on whether the ETF is an open-ended collective investment scheme and a UCITS itself or a closed-ended collective investment scheme. The percentage of a UCITS fund’s net asset that can be invested in an ETF varies and also depends upon this categorisation.
  • 11.12.2008