Soci\u00e9t\u00e9 d'investissement \u00e0 Capital Variable (SICAV)
What Is Soci\u00e9t\u00e9 d'investissement \u00e0 Capital Variable (SICAV)?
A Soci\u00e9t\u00e9 d'investissement \u00e0 Capital Variable, or SICAV fund, is a publicly-traded open-end investment fund structure offered in Europe. SICAV funds are like open-end mutual funds in the U.S. Shares in the fund are bought and sold in light of the fund's current net asset value (NAV).
Figuring out SICAV
SICAVs are regulated under European law. Their organizing can be directed by either the Undertakings for the Collective Investment of Transferable Securities (UCITS) regulatory structure or the specific investment fund (SIF) system. Most funds follow UCITS law established in 2009 by the European Commission to make a harmonized system all through Europe for the management and sale of mutual funds. Some SICAVs might follow SIF law established in February 2007 essentially for institutional investors.
SICAVs have a board of chiefs to supervise the fund. Every individual shareholder gets voting rights and has the option to attend the annual regular gatherings. The term SICAV is an abbreviation for Soci\u00e9t\u00e9 d'investissement \u00e0 Capital Variable. These funds are most notable and utilized in France, Luxembourg, and Italy. Like open-end mutual funds, SICAVs don't have a fixed number of shares traded in the public market.
SICAV versus SICAF
SICAVs are frequently diverged from SICAFs. SICAFs are like closed-end funds in the U.S. SICAFs are an abbreviation for Soci\u00e9t\u00e9 d'Investissement \u00e0 Capital Fixe. They are traded on public market exchanges and operate with a fixed number of shares.
UCITS structured SICAVs are actively cross-border marketed in Europe. They are one of Europe's most actively traded investment products. The funds trade on exchanges in their designated currency.
SICAV Investments
JPMorgan is one global asset manager offering a thorough rundown of SICAV investments. The firm oversees north of 600 SICAVs.
For instance, in October 2016, the firm sent off the JPM U.S. Corporate Bond A (dist) - USD SICAV. The fund looks to outperform the Bloomberg U.S. Corporate Investment Grade Index by investing principally in investment-grade USD-designated U.S. corporate debt securities. The fund has an annual fee of 1%, a maximum entry charge of 3% and an exit charge of 0.50%.
The JPM Global Select Equity SICAV series was one of the principal sent off by the firm. The strategy has a beginning date of April 30, 1981. It has three USD designated funds and two EUR named funds. The funds center around investments across the whole global equity market universe.
Features
- SICAV fund shares are accessible to the public to trade, with prices that depend on the fund investments' net asset value.
- A SICAV is an open-ended investment fund structure offered by European financial companies.
- SICAV represents Soci\u00e9t\u00e9 d'investissement \u00e0 Capital Variable, which makes an interpretation of in a real sense to english as "Investment company with Variable Capital".
