Investment Fund risks

[Splat]

Hi,

What happens an investment fund if the company running the fund has problems? I had assumed the fund is backed by the assets which the fund has bought, so if the managing company goes bust the fund's holdings are treated seperately. Is this right, and if not where do fund holders sit in the pecking order when a company is wound up?

Thanks

 

[Brendan Burgess]

In the case of life insurance companies, you have effectively a life policy. You would be a creditor to the life insurance company.

It's a very interesting question as a holder of UCIT might not be affected by the collapse of its manager.

Brendan