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