Multi-class fund Structure








Multi-class fund is one of the types of investment fund’s structures. This structure offers investors different types of shares, called classes. Classes can vary according to:

Currency
Fee/Expenses Structure
Distribution policy
Type of investors (e.g. institutional vs. retail)

Each class will invest in the same “pool” (or investment portfolio) of securities and will have the same investment objectives and policies. But each class may have different currency, fees and/or expenses. This offers investors the ability to select a structure that is most appropriate to their investment goals. 

Other benefits include:
Economies of scale (more investors to share expenses)
Lower costs and less paperwork involved in launching a new class than a new fund
Bigger investment opportunities (more investors means more capital)

Different activities on the fund, like Capstock, Expenses, and Trades are posted either at class or at composite level. 
Composite level activities are:

Trades
Fixed Expenses
Income (dividends and interest)
Realized Gain/Loss on transactions
Unrealized Appreciation/Depreciation

Class specific activities are: 
Capstock
Variable Expenses

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