What is a UCITS fund?

A UCITS fund is a fund that is subject to the UCITS Directive. UCITS is the abbreviation for “Undertaking for Collective Investments in Transferable Securities” . This Directive regulates the authorisation, operation and prudential supervision of UCITS funds and their management companies. UCITS funds usually invest in equities and bonds. The UCITS Directive is a strict EU product regulation that provides a high level of regulatory certainty. It was launched in 1985. Since then, it has evolved, and UCITS has become a globally recognised brand. It is mainly institutional investors worldwide, such as pension funds, that place their trust in and invest in UCITS. Within the European Economic Area, a UCITS fund can be distributed to all investors via passporting.