UCITS compliance

What is UCITS?

UCITS, an abbreviation for Undertakings for Collective Investment in Transferable Securities, is a standard established by the European Union to harmonise investment funds across member states. It emphasises transparency, liquidity, and a standardised risk profile to safeguard investors' interests.

How Does UCITS Work?

A UCITS-compliant fund provides clear insights into its investment objectives, risks, and expenses. These funds adhere to daily valuations and ensure daily redemptions, thus ensuring liquidity. They are also obliged to focus on diversified investments which mitigate risks.

Why is UCITS Important?

UCITS serves as a badge of safety and transparency for investors, making UCITS-compliant funds a preferred choice for those seeking lower-risk investment avenues. However, some funds may opt out of UCITS compliance to pursue more aggressive or alternative strategies.