Digital Assets Report

Since the introduction of the UCITS (Undertakings for Collective Investments in Transferable
Securities) Directive in 1985, UCITS funds have become widely used by asset management

Since the introduction of the UCITS (Undertakings for Collective Investments in Transferable
Securities) Directive in 1985, UCITS funds have become widely used by asset management
companies looking to distribute fund products outside their national borders.  UCITS are investment funds that meet the criteria laid down by European Union directives in order to be eligible for sale throughout EU member states and abroad.  The latest directive, UCITS IV, was adopted by the European Parliament in January 2009 and its regulations will take effect on July 1, 2011.

Although UCITS were developed originally to harmonize Europe’s fund structures and promote fund distribution between Member States, today they have also become a “gold standard” recognized by numerous countries worldwide.  With new business opportunities in regions outside the European Union, such as Eastern Europe, Asia, Latin America and the Middle East, UCITS will enable European management companies to continue their expansion in both financial and geographic terms and offer US fund managers the opportunity to claim market share with a highly-sought after product that is seen to be highly-regulated and therefore safer and more transparent to the investor.