Les fonds de placement

An investment fund is operated by a management company following a specialized and regulated structure. European regulation imposes on these companies certain obligations designed to protect investors. The requirements include distinct accounts for each fund and clearly written objectives, particularly on risks. In European Union countries, a national market’s regulatory authorities oversee compliance with regulations governing investment funds.

Depending on the types of funds, investors can be shareholders, which is the case with the French or Belgian Sicav: they have right to vote during Sicav’s annual shareholder’s meeting. Fund investors can also be co-owners of the fund, without voting rights, which is the case with French and Belgian Fonds Commun de Placement.

Investment funds can be closed-end or open-end funds. Closed-end funds only allow investors to buy shares during a limited period—at the fund’s opening. In contrast, open-end funds make it possible to buy or to sell a fund’s shares at any time. Most European investment funds are open-end.