As one of the leading banking institutions in Cyprus in the investment funds area, we established the UCITS ERB Funds VCIC PLC umbrella investment fund. This is licensed and regulated by the Cyprus Securities and Exchange Commission (registration number UCIT 08/78) and consists of the following two segregated mutual funds:
- ERB Short Duration EUR Mutual Fund denominated in Euro
- ERB Short Duration USD Mutual Fund denominated in US Dollar
The investment objective of each Mutual Fund is to achieve consistent absolute returns through investments in fixed income transferable securities, money market instruments and bank deposits. Both Mutual Funds offer investors diversified exposure in short term investments with high liquidity.
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.
The stringent European regulatory framework governing UCITS Mutual Funds makes them one of the most effective asset management tools that can yield notable advantages to investors:
- Professional investment and portfolio management
- Direct liquidity
- Enhanced Risk/Reward profile through wide investment diversification
- Comparatively low transaction costs
- Low initial capital investment requirements
- Full transparency through daily publication of prices and returns
These investor friendly mandates make UCITS funds an investment choice for both institutional and retail investors.