Jersey: Listed Funds: A Q&A With Craig Cordle

Last Updated: 29 September 2017
Article by Craig Cordle

Most Read Contributor in Jersey, October 2017

What is a listed fund?

Broadly speaking, an investment fund refers to any vehicle (usually a corporate vehicle in the case of listed fund) which allows investors to pool their money together for investment by an investment manager in accordance with a defined investment policy. A listed fund is an investment fund which has been admitted to trading and/or listing on a stock exchange – being a platform were securities can be bought and sold. The term "listed" is often used interchangeably with "traded" but there are important distinctions between the two (see further below).

If you have a personal pension, there is a very good chance that some of it will be invested (albeit indirectly) in a listed fund.

The shares in listed funds are publicly traded securities which are transferable at the option of the shareholder (subject, of course, to finding a willing buyer), whereas an investment in a private fund will likely only be permitted to be transferred by an investor with the consent of the manager of the fund.

Why establish a listed fund?

There are lots of reasons to establish a fund – here are just a few:

  • Tax-efficient – funds are structured to be tax-efficient, meaning that investors (after the fees of the investment manager and other service providers etc.) insofar as is possible are treated as if they had invested in the fund's assets directly;
  • Permanent capital vehicle ­– a listed fund will often have no fixed life and there will be no ability for shareholders to redeem or withdraw their investment from the fund. Shareholders exit their investment by selling their shares on the relevant stock exchange. This means that the invested capital in the fund cannot be reduced by shareholders withdrawing their investment.
  • Exposure to assets not otherwise available to single investor / spread of investment risk – one of the benefits of pooling investment with other investors in a fund is that an investor can gain exposure to assets which may otherwise be unavailable to a single investor. For example, a fund which invests in renewable energy projects. In addition, certain funds will be required to make a minimum number of investments to spread investment risk (or, in other words, the fund won't put all its eggs in one basket).
  • Regulated entity – the fund will be subject to regulation in its place of domicile (for example, Guernsey or Jersey) and by virtue of its listing – for example, funds listed on the Main Market of the London Stock Exchange will be subject to the UK Listing Rules and funds listed on The International Stock Exchange (TISE, formerly the Channel Islands Stock Exchange) in the Channel Islands will be subject to the TISE Listing Rules. These rules (and others) will seek to protect investors by requiring the timely disclosure of information and monitoring of investment risk.
  • Liquidity – as noted above, shares in a listed fund are publicly traded, so as long as a seller can agree on a price with a buyer, they will be able to sell their shares.

What can a listed fund invest in?

Broadly speaking any asset can be "wrapped" in a listed fund wrapper. For example, a listed fund may make investments in other investment funds, shares, loans, infrastructure, property, student accommodation, planes, ships, wind farms, solar energy, intellectual property... the list goes on!

Who manages a listed fund?

A listed fund will either appoint an external investment manager or will be self-managed, meaning that the board of directors of the fund will make investment decisions for the fund (albeit usually on the advice of an external investment adviser). Whether the fund is managed by an external manager or is self-managed, investments will be made in accordance with the fund's stated investment policy.

In addition to the manager, a listed fund will also have a board of directors, the majority of whom will be independent of the manager. The board will ensure compliance with applicable corporate governance requirements and will monitor the service provided by the manager and other relevant service providers such as an administrator, registrar and custodian.

Where to list

The market on which a fund is listed will be dependent on the fund's ability to meet any listing restrictions applicable to the relevant market. For example, listing on the Main Market of the London Stock Exchange will mean that the fund's investment policy will require the fund to have a sufficient spread of investment risk. Other markets, such as the Specialist Fund Segment of the London Stock Exchange (the SFS) and TISE, will be more permissive in terms of a fund's investment policy – for example, funds investing in a single aircraft have been admitted to trading on the SFS.

Where a fund is listed can also have tax implications for an investor. For example, UK resident taxpayers may be concerned about the eligibility of their listed fund shares for inclusion in an ISA or a SIPP – it's important to note that not all stock exchanges will qualify. Those which will qualify include, but are not limited to, the Official List of the UK Listing Authority (i.e. the Main Market of the London Stock Exchange) and TISE. Admission to trading on the SFS will not alone be sufficient for ISA/SIPP-eligibility. 

It is possible to list a fund on two (or more) markets (known as a dual-listing) – for example an admission to trading on the SFS has been paired with a listing on TISE. Therefore gaining greater market visibility and ISA/SIPP eligibility for certain investors.

Marketing a listed fund

Marketing (or selling) any investment fund (whether listed or not) will likely be subject to restrictions on either the manager or the fund, taking into account where the fund has been established, where the manager is located and where the potential investors are located. The rules relating to marketing a fund can often be complex, so specialist advice would always be recommended.

How long does it take to launch a listed fund?

There are a number of factors which contribute towards the timetable for launching a listed fund – however, 10-12 weeks is usually is usually sufficient time.

This article first appeared in Contact magazine.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.