The fund law provides a regime for both cross-border and domestic mergers of UCITS, with the basic principle that all UCITS are entitled to merge regardless of their structure (e.g. corporate, unit trust or contractual). A merger takes place between one or more UCITS, or compartment thereof, and a receiving UCITS, or compartment thereof. The merging UCITS and the receiving UCITS must draw up common draft terms of merger.
The UCITS law allows master-feeder structures. A feeder UCITS is a UCITS or an investment compartment which invests at least 85% of its assets in units of another UCITS or an investment compartment of another UCITS. A master UCITS is a UCITS or an investment compartment of a UCITS which must have among its unit-holders at least one feeder UCITS, not be itself a feeder UCITS and not hold units of feeder UCITS. The master and the feeder UCITS may be established in the same EU Member State or in two different ones. These structures may be used for distribution purposes and to gain efficiencies through the pooling of assets.
More information is provided by our brochure on master-feeder structures.