QIFs – a brief description
Qualified investor funds can take various forms, mainly depending on the founder’s investment plan and investment strategy. Funds can be established with or without legal personality.
Forms and types of funds
- Ordinary legal entity
public limited company, private limited company, limited partnership, societas Europaea, cooperative - SICAV
public limited company with variable capital limited - partnership for investment certificates
- Mutual fund
- Trust fund
In general, QIFs work in two forms:
- An open-ended fund
allows investors to join and leave the fund on an ongoing basis - A closed-end fund
closes for a pre-defined period after obtaining capital from investors
Sub-funds
Sub-funds can only be established within a SICAV-type fund. A sub-fund is a part of a fund that has a defined investment strategy. Within a single fund, there may be multiple sub-funds with different investment strategies and separate portfolios targeted at different types of investors.
The assets of the individual sub-funds are separated from each other, and they issue their own investment securities. Investors invest their money in a specific sub-fund.
Roadmap for the establishment and management of a fund:
- investment plan and business plan
- definition of fund parameters
- application for CNB registration
- commencement of the fund’s investment activities
- general meeting of the fund
- appraisal and valuation of securities
- annual closing operations
- financial audit and annual report