Fund share class
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Fund share classes form different pillars within the structure of an investment fund . These are grouped under a kind of umbrella, which is why this form of construction is referred to in technical jargon as an umbrella fund . The most widely used form in Germany is the so-called SICAV model. This is a fund under Luxembourg law that is usually marketed by a Luxembourg- based subsidiary of a German investment company .
Each unit class is usually provided with its own ISIN , WKN and other master data . Regardless of the unit class, each fund unit is fundamentally worth the same as it relates to the collective fund assets.
For the investor as well as for the fund company, the unit classes offer the advantage that you can actively influence various differentiating features. There is currently no legal basis for structuring or naming fund unit classes. A selection of common distinguishing features are:
- Currencies
- Currency hedging ( hedging )
- Use of income
- Minimum investment amount
- (Amount of) the subscription fee
- (Amount of) management fee
- (Amount and timing of) sales fees
In distribution, the fund's best-selling unit class is often used together with other sales materials, e.g. B. in the form of so-called fact sheets . In addition to the performance and a few words about the fund's investment policy , the potential investor is shown an overview of the return , the remaining term , the largest positions in the fund's assets , an industry and / or country structure, etc. The positioning of the fund is identical across all unit classes. It is often not obvious how large a share class is in the fund's assets. Details are presented in the annual report . Due to the diversification in unit classes with different currencies , different value developments can be achieved.
Since umbrella funds are not permitted by a German investment company (domiciled in Germany!) Under German law, a fund model was often launched several times in the past, provided with different features and simply added a letter or number to the fund name for differentiation .