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THE EUROPEAN INVESTMENT FUND MANAGEMENT INDUSTRY
third chapter, alternative funds in the fourth, and the fifth chapter will attempt to combine the common elements. Chapters three and four have been constructed to be essentially the same in their structure and thus offer a relatively simple and immedi- ate yardstick for comparing the two products. In this regard, the general distinguish- ing features will be analysed, including, among others, the different types of funds (for alternative investments), eligible investments and related limits and restrictions (for UCITS funds), as well as primary compensation structures and the main struc- tures used in Luxembourg and Ireland from a legal, regulatory and company law perspective. Finally, chapter five underlines, albeit with due distinctions and cau- tion, several aspects that are common or at least similar to make parallelisms be- tween UCITS and alternative funds, including the form, organisational structures, service providers, and the functioning of corporate governance, as well as regulatory aspects such as the documentation and reporting requirements, master-feeder struc- tures, and cross-border distribution, and extraordinary transactions.
Chapter six is dedicated to the last topic of the book: passively managed investment products. Given their relevance in today’s asset management industry, it will provide a high-level overview of exchange-traded products, particularly exchange-traded funds, analysing the main basic features, including replication strategies and dealing arrangements, and highlighting their costs and relative performance.
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