Sub-Fund
Definition
What is Sub-Fund?
A distinct portfolioThe complete collection of investments owned by an investor or managed under one mandate. within an umbrella fundA legal fund structure containing multiple sub-funds under one overall arrangement., with its own objective and assets.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. chooses the dollar bond sub-fund within a larger umbrella scheme.
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Related Terms
Collective Investment Scheme
A regulated arrangement that pools investors' money for investment according to a common objective.
Fund Structure & RegulationOpen-Ended Fund
A fund that can create or cancel units as investors subscribe and redeem.
Fund Structure & RegulationClosed-Ended Fund
A fund with a relatively fixed number of units that investors usually trade with one another.
Portfolio MetricsAsset Allocation
The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.