Monegasque ‘fonds communs de placement’ or FCPs (broadly equivalent to unit trusts) are governed by Act No. 1,339 of 7 September 2007 and its implementing regulations, which can be found on this website.
The creation of a Monegasque FCP requires authorisation from the CCAF.
Investing in an FCP grants access to a diversified portfolio assembled by a specialist fund manager, but also in some cases allows the investor to take positions in markets that are difficult to access directly.
FCPs may invest in a very wide range of different asset classes (equities, bonds, etc.), geographic zones, and sectors. Alternatively, they may focus on a particular market. The fund’s management objective and investment strategy are described in a simplified prospectus.
Specific funds may be created:
- Index funds,
- Formula-based funds,
- Umbrella funds,
- Master-feeder funds.
The rules governing Monegasque FCPs are largely based on European standards (eligible asset classes, asset allocation ratios, etc.).
Funds marketed exclusively in the Principality may be exempted from certain standard asset allocation rules, allowing for a more flexible management approach.
FCPs are generally open to all types of investors.
Depending on the risks incurred, the Commission may restrict the marketing of some FCPs to professional or sophisticated investors.
A bespoke FCP may also be created for certain specific categories of investors (natural or legal persons), and will be reserved exclusively for them.