The Labrusca Global Fund is an open ended and daily traded SICAV operating under the UCITS IV framework. A SICAV (“société d'investissement à capital variable”) can be translated as an 'investment company with variable capital'.

UCITS (Undertakings for Collective Investments in Transferable Securities) is a globally leading regulation framework. It is increasingly being recognized worldwide as the mark of a stable and well regulated investment product. UCITS IV is a framework that is used by both traditional long-only managers as well as absolute return managers. The UCITS framework is established in Europe and gaining market share outside the EU, notably in South America and Asia.

The UCITS IV framework opens up for investing in a wide variety of asset classes. However, funds need to be suitably diversified with respect to individual constituents and asset classes. For instance, the framework allows financial instruments that can be used to hedge exposure in different asset classes. This important feature makes the regulatory framework suitable for absolute-return seeking funds.

The UCITS funds in Luxembourg are under supervision of the The Commission de Surveillance du Secteur Financier (“CSSF”). The CSSF requires a management company of a UCITS fund to report holdings and risk level in the fund on a regular basis. This ensures a high level of transparency as opposed to traditional hedge funds that largely are unregulated pools of money.

The UCITS IV framework gives access to a wider range of investment options, and with additional advantages for both ourselves and our clients:

• A stricter level of regulation. Whereas for example hedge funds have very few restrictions, and various countries have a less effective fund regulations, UCITS IV-funds are heavily regulated. As long-term investors we prefer a stable and less incident-prone regulatory environment.
• A greater level of transparency. Whereas again some funds may operate as “black boxes” where you might not even know who is managing the fund, UCITS IV-funds require timely and comprehensive client reporting as well as always valid full and simplified prospectus.
• Accountability. The Management Company, as well as the sponsor and select service providers, carry the responsibility for administrative processes.