Undertakings for Collective Investments in Transferable Securities (UCITS)

Definition:

A European Union Directive adopted in 1985. The objective of UCITS was to allow collective investments to operate throughout the EU with a single authorization from one member state, allowing funds authorized in one member state to be sold to the public in other member states. In practice, UCITS was not successful as many EU nations have imposed additional regulatory requirements in order to protect local asset managers.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Bundling, unbundling

Creation of securities either by combining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes.

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