Various funds (feeders) invest their assets in one master fund. There is no diversification, as the feeders only have holdings in the master fund. However, this structure became admissible in Europe with UCITS IV. The feeders have to invest at least 85% of their assets in a single master fund. The master is always a UCITS and never itself a feeder. Masters may not hold shares in other feeders.
German: Master-Feeder Funds (532)
Source: SFO D15 2010 m. e. E., 24.04.2010