Unlike fund structures such as the investment company with variable capital or the ICAV (Irish collective asset-management vehicle), a CCF does not have separate legal personality.
A CCF is an unincorporated body constituted under contract by a deed of constitution between a management company and a depositary.
The key difference between a CCF and other Irish fund structures is that the CCF is tax transparent. This means that, for tax purposes, investors in the CCF are treated as if they directly own a share of all underlying investments held by the CCF proportionate to their investment in the CCF. This feature allows for economies of scale that make the CCF particularly attractive to pension funds and other asset pooling vehicles.
Investment in a CCF is restricted to institutional investors, unlike other Irish fund structures that are generally open to investment by both natural persons and institutional investors. Generally, there are no voting rights attached to units issued in the CCF and investors in a CCF are not permitted to hold unitholder meetings (unless in certain limited circumstances as may be permitted by the deed of constitution).
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
