The Purpose of an Umbrella Fund

Umbrella Fund pic

Umbrella Fund

The managing director of Firminy Capital Sarl, Dirk Coetzer also heads ICON Capital Sarl. Dirk Coetzer joined the company in 2006 and is responsible for fund management, particularly the ICON Investments Fund.

A mono fund, the ICON Investments Fund maintains an umbrella fund structure. An umbrella fund contains one primary mutual fund that oversees a smaller family of funds, also known as sub-funds. Similar to a family of funds arrangement, an umbrella fund allows each sub-fund to act as its own mutual fund. The same investment strategy does not have to apply to all funds in the group, which offers investors flexibility when deciding how to allocate money. Depending on the umbrella fund, the focus is on stocks, bonds, or commodities.

Traditionally, switching between mutual funds requires transaction fees associated with selling and purchasing investments. However, umbrella funds are cost-efficient and typically do not incur transaction fees when switching providers or sub-funds.


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