UCITS Regulatory Framework
The Undertakings for the Collective Investment of Transferable Securities (UCITS) is a regulatory framework of the European Commission that creates a harmonised regime throughout Europe for the management and sale of investment funds. Both retail and institutional investors see UCITS as a safe and well-regulated investment option, as UCITS requirements are very strict in terms of portfolio composition, use of leverage, use of short sales and transparency.
UCITS are characterised by the great value of collective investment management of a large number of investors. Through UCITS, a very large number of investors gain access to capital and equity markets. These are based on the idea that many investors, who share the same investment philosophy and common goals, pool their money, creating a large, powerful equity that is actively managed by professional portfolio managers.