An investment fund collects capital from the public in order to invest it in assets (equities, bonds, etc.) in accordance with the investment strategy defined when the fund was set up and the legal framework imposed by its country of domicile.
SICAV (Société d’Investissement à Capital Variable)
A SICAV is an open-ended collective investment scheme. It is a company whose objective is to pool the risks and benefits of an investment in transferable securities(shares, bonds, etc.), negotiable debt securities and other financial instruments authorised by the regulations and the SICAV’s articles of association. SICAVs have their own legal personality. The Company has a Board of Directors and shareholders of the SICAV have voting rights at the annual general meeting.
A SICAV is often split into sub-funds that pursue well-defined investment policies or objectives. The sub-funds may differ in terms of the currencies, geographical areas or business sectors in which they invest. Investors may switch sub-funds (usually for little cost).