CIS 12.4 Feeder funds and Funds of Funds

So far as is practicable, the authorised fund manager of a feeder fund must deal on the same basis (forward or historic) as the regulated collective investment scheme into which the feeder fund invests.

The normal valuation point for a feeder fund must be within two hours after each normal valuation point for the scheme, or sub-fund, into which the feeder fund feeds.

(1) and (2) do not apply to a feeder funddedicated to a single eligible investment trust.

A fund of funds scheme must be valued no less frequently than if it were the relevant type of scheme by type of investment under CIS 5A.11.4 R (Eligible combinations of scheme) and the authorised fund manager of a fund of funds scheme must deal on the basis of forward prices if that is required for the relevant type of scheme under CIS 5A.11.4 R.

Where a fund of funds scheme invests in money market schemes (within CIS 5A.5 (Money market schemes)), (1) applies only if the scheme does not invest in any other type of scheme.1