Capital Flows Between Countries: Reciprocal Arrangements for the Sale of Shares in Mutual Funds

Thursday, January 1st, 1987 at 12:00 am by Albert Francke, III
Albert Francke, III, Capital Flows Between Countries: Reciprocal Arrangements for the Sale of Shares in Mutual Funds, 1987 Colum. Bus. L. Rev. 365

Investments in foreign companies are often made through a pool of diversified transferable securities managed by qualified advisers in the country of investment. By selecting this investment vehicle, investors are able to diversify their risk and minimize the disadvantages caused by unfamiliarity with foreign companies and markets. These pools are commonly known as unit collective investment trusts or by the Continental acronym ‘UCITs,’ a classification which includes American open-end investment companies and mutual funds, unit trusts in the United Kingdom, and their Continental analogues such as the French fonds common du placement.

Author Information

Mr. Francke is a partner at Curtis, Mallet-Prevost, Colt & Mosle, New York.