- Collective Investment Fund
- A fund that is operated by a trust company or a bank and handles a pooled group of trust accounts. Collective investment funds combine the assets of various individuals and organizations to create a larger, well-diversified portfolio. The following are two types of collective investment funds:
A1 Fund: A fund of grouped assets contributed by either the holding bank or affiliated banks for the exclusive purpose of investment and reinvestment.
A2 Fund: A fund of grouped assets contributed by pension, profit sharing, retirement, or other trusts that are exempt from federal income tax
The idea of a collective fund is to lower costs through economies of scale by combining pensions and profit-sharing funds. These pooled funds are grouped into what is known as a
master trust account under the control of the bank, which acts as trustee, guardian, executor or administrator.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Collective investment scheme — The values and performance of collective funds are listed in newspapers A collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. These… … Wikipedia
collective investment scheme — A system for pooled investment in securities where investors combine their resources to buy investments together. It is achieved through the medium of unit trusts or investment trusts. The benefit to the small investor is the ability to spread… … Financial and business terms
exempt investment fund — Fin in the United Kingdom, a collective investment, usually a mutual fund, for investors who have certain tax privileges, for example, charities or contributors to pension plans … The ultimate business dictionary
Undertakings for Collective Investment in Transferable Securities Directives — The Undertakings for Collective Investment in Transferable Securities Directives 2001/107/EC and 2001/108/EC (or UCITS ) are a set of European Union Directives that aim to allow collective investment schemes to operate freely throughout the EU on … Wikipedia
Undertakings For The Collective Investment Of Transferable Securities - UCITS — A public limited company that coordinates the distribution and management of unit trusts amongst countries within the European Union. These funds can be marketed within all countries that are a part of the European Union, provided that the fund… … Investment dictionary
investment trust — A closed end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets , like corporate stock. The market price may exceed the net asset value per share, in which case … Financial and business terms
Investment management — is the professional management of various securities (shares, bonds etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds,… … Wikipedia
Fund administration — is name given to the set of activities that are carried out in support of the actual process of running a collective investment scheme, whether the scheme is a traditional mutual fund, a hedge fund, Pension fund, unit trust or something in… … Wikipedia
Investment — or investing [British and American English, respectively.] is a term with several closely related meanings in business management, finance and economics, related to saving or deferring consumption.Investment is the choice by the individual to… … Wikipedia
Investment trust — Investment trusts are companies that invest in the shares of other companies for the purpose of acting as a collective investment.cite web title = Investment Trusts work = Your Money publisher = The Motley Fool date= 13 March 2006 url =… … Wikipedia