In the case of open-ended collective investment schemes, investors have a direct or indirect legal right to return their units at net asset value to the detriment of collective assets. SICAV stands for Société d`Investissement à Capital Variable (also known as “société d`investissement à capital variable”) which issues shares. In the case of SICAVs, the fund itself is a public limited company and therefore a legal person. The capital of the company depends on the amounts deposited by the investors. The units of a SICAV are bought and sold according to the value of the fund`s assets or the net asset value. In accordance with applicable laws and regulations, a SICAV may either designate a separate management company or manage itself. (Adapted from the website of ALFI – Association of the Luxembourg Fund Industry.) Investment funds. A corporation or structure without legal personality (for example, a common law trust) established to provide investors with a share of profits or income derived from assets acquired, held, managed or disposed of by the officer(s) of the corporation or structure, or a right to payment determined by reference to such profits or income. This type of company or agreement is referred to in Community legislation as a `collective investment undertaking`. It can be regulated or unregulated.
It is usually managed by one or more persons (who may be individuals and/or legal persons) who have various rights and obligations governed by ordinary law and/or, in the case of regulated investment funds, by financial services legislation. If the agreement does not have legal personality, one or more representatives of the unit trust, such as a trustee of an investment fund, shall have the rights and obligations provided for in the contract on behalf of the unit trust and shall be entitled to compensation from the assets contained in the agreement. SICAVs structured by UCITS are actively distributed across borders in Europe. They are one of the most actively traded investment products in Europe. Funds are traded on the stock exchange in the currency they want. An open-ended investment company or SICAV is a common form of open collective investment, an investment fund present in France and other Francophile countries (including Luxembourg, Belgium, Switzerland, etc.). A SICAV is a collective investment scheme common in Western Europe, including Luxembourg, Switzerland, Italy, Spain, Belgium, Malta, France and the Czech Republic. SICAV is an acronym for société d`investissement à capital variable, which can be translated as “société d`investissement à capital variable”. SICAVs are increasingly marketed abroad in the EU under the UCITS Directive. Any product change involving a change in the investment rules must be obtained by FINMA in advance.
If the initial licence basis changes, FINMA`s licence must be obtained before operations resume. An application to this effect must be submitted to FINMA. JPMorgan is a global asset manager offering a comprehensive list of SICAV investments. The company manages more than 600 SICAVs. It is important to distinguish between self-managed SICAVs and externally managed SICAVs. They may delegate their management only to an approved fund management company (Art. 51 para. 2 of the Standby-Laws).
The SICAV may only delegate investment decisions to persons subject to recognised supervision (Art. 36 para. 3 CISA). Unless explicitly stated otherwise, the application procedure is identical for both types of SICAVs. In October 2016, the company issued the JPM U.S. Corporate Bond A (dist) – USD SICAV. The fund aims to outperform the Bloomberg U.S. Corporate Investment Grade Index by investing primarily in investment-grade USD-denominated U.S. corporate bonds. The fund has an annual fee of 1%, a maximum entry fee of 3% and an exit fee of 0.50%. In the slang of ISDA compensation categories, probably a mutual fund.
SICAVs are often compared to SICAFs. CFIS are similar to closed-end funds in the United States. SICAF is the acronym for Société d`Investissement à Capital Fixe. They are traded on public exchanges and operate with a fixed number of shares. According to the Federal Act on Collective Investment Schemes (CISA), an open-ended collective investment scheme can be a contract fund or an investment company with variable capital (SICAV). A SICAV must be authorised by FINMA before it can start operations. In addition, it must obtain the approval of its governing documents (i.e. articles of association and investment regulations).
In the case of SICAVs, each sub-fund requires a separate authorisation (Art. 15 para. 2 CISA). In addition, FINMA`s authorisation must be obtained before new sub-funds are created within an existing SICAV. The specific authorisation and approval requirements for SICAVs are as follows: A Variable Capital Investment Company (SICAV Fund) is a publicly traded open-ended investment fund structure offered in Europe. SICAV funds are similar to open-ended mutual funds in the United States. Units of the fund are bought and sold based on the fund`s current net asset value (NAV). In Spain, a SICAV is a joint-stock company whose purpose is to invest in financial assets. SICAVs benefit from significant tax advantages since they pay only 1% corporate tax (corporate tax).
Nevertheless, they must meet several requirements: SICAVs have a board of directors that supervises the fund. Each individual shareholder has the right to vote and to participate in general meetings. The term SICAV is the acronym for Société d`investissement à Capital Variable. These funds are best known and are used in France, Luxembourg and Italy. Like open-ended mutual funds, SICAVs do not have a fixed number of shares traded on the public market. Each open-ended collective investment undertaking has its own fund rules (often referred to as a prospectus). Contract funds are governed by the collective investment agreement (e.g. fund contract).
In SICAVs, these are the statutes and the investment regulations. It is constituted in the form of a joint-stock company (PLC., SA) or in the form of a limited partnership by shares. The share capital is variable and its value corresponds at all times to the value of the fund`s net assets. The JPM Global Select Equity SICAV series was one of the first launched by the company. The date of entry into force of the strategy is 30 April 1981. It has three USD-denominated funds and two EUR-denominated funds. The funds focus on investments in the global equity market universe. It is similar to an open-ended mutual fund in the United States, while a sociedad de inversión de capital fijo or a closed-end investment company (SICAF) resembles a closed-end fund.