* A UCITS fund is a fund established in an EC member State that complies with EC Directive
85/611/EEC on Undertakings for Collective Investment in Transferable Securities. Once qualified,
a UCITS fund may be publicly offered throughout the EC.
July 8, 1993
TO: INTERNATIONAL COMMITTEE NO. 15-93
RE: NOTICE OF MEETING -- AUGUST 5
__________________________________________________________
The Institute is holding a meeting on Thursday, August 5 to discuss a
possible proposal to facilitate the U.S. industry's ability to market in
Europe. The meeting will take place at 10 a.m. at the Institute's offices.
Lunch will be served.
The purpose of the meeting is to determine whether the Institute should
seek regulatory changes that could improve the access that the U.S. and
European fund industries have to each other's markets. Specifically, the
Institute could seek regulatory changes to permit the creation of a master
fund/feeder fund structure that would allow one master fund to have both U.S.-
registered and European-registered feeder funds. This could be accomplished,
for example, if U.S. and European regulators would recognize a master fund
located in an EC Member State as both a U.S.-registered 1940 Act fund and a
registered UCITS fund.* Once such a master fund is established, publicly
offered feeder funds could be created in the U.S. and throughout the EC to
invest in the master fund.
Such a master fund/feeder fund structure could offer a number of
advantages, including 1) significant economies of scale through use of one
master fund for both U.S. and European investors and 2) the ability to tailor
the individual feeder funds to suit the needs of a particular market. Such a
structure may improve a U.S. money manager's ability to attract European fund
investors and could give European managers better access to the U.S. market.
Implementation of this concept would require a number of changes in
European law and practice. Moreover, we will need to ensure that the
structure would comply with SEC requirements. Before proceeding with what may
be a long-term effort, we wish to gauge whether such a structure, if
implemented, would be a useful alternative for accessing various foreign
jurisdictions. Thus, we hope to have a full discussion of the pros and cons
of this proposal at the meeting.
A memorandum that more fully describes the concept will be forwarded to
you prior to the meeting.
Angela C. Goelzer
Associate Counsel - International
Please return this portion to Theresa Brice, Investment Company
Institute, 1600 M Street, N.W., Suite 600, Washington, DC 20036 OR fax it
(202/659-1519)
YES NO
____ ____ INTERNATIONAL COMMITTEE MEETING
10:00 a.m., Thursday, August 5, 1993
____ ____ Lunch
_____________________________ or ______________________________
COMMITTEE MEMBER'S NAME ALTERNATE'S NAME
________________________________________________
COMPANY NAME