The Funds SICAV, where the acronym stands for an investment company with variable capital, invests the majority of its assets in shares or participations in Collective Investment Schemes (CIS).
The investment policy of a Funds SICAV must follow certain guidelines:
- In this type of company, more than 50% of the assets must be invested in stocks or shares of several CISs of a financial nature.
- The investment limit in a single CIS is 45% of its assets for a compulsory minimum of three CISs. The excess for investment in other institutions can be executed in equity or fixed income assets, taking general investment limits into account.
- A Funds SICAV it cannot invest in a CIS that in turn allows the materialisation of more than 10% of its assets in other CISs.
- They can invest in IICs non-financial, previous authorisation of the Ministry of the Economy and the CNMV .
Collective Investment Schemes (CISs) in which a Funds SICAV is invested must fulfil certain requirements:
- They cannot misrepresent the statutes and regulations of the Funds SICAV in terms of its objective and risk limit.
- They must be CISs based in countries of the OECD that are not tax havens and that are registered and supervised.
- The stocks or shares in CISs must be liquid (negotiated in the case of companies or that guarantee the reimbursements charged to their capital) and their net asset value must be subject to regulated periodic advertising.
- Funds SICAVs benefit from the the same taxation as the SICAV.