You have often heard of the SICAV but I do not know what they are how they work? Do you want to understand something more? In this guide I will try to make you a better idea.

You must know that the Fund is an acronym for Company ‘s investment in variable capital. As you can guess a SICAV is a company whose purpose is to invest the assets that collects offering the public their actions. Who buys the shares of a Fund becomes shareholder of the company and can participate in community life, influencing the choice of companies, through the exercise of the right to vote. And it is this which differentiates the SICAV by Mutual Funds . In ‘ beyond the SICAV have been introduced in Italy by a decree in 1992, with the aim to increase the flow of assets under management.

The peculiarity of the shares of the SICAV is that they do not have a nominal value, but their value is derived from the ratio of shareholders’ equity of the Fund and the number of shares outstanding . This is because the Fund does not have a nominal capital, but its capital is the equity that varies as a result of subscriptions or redemption. You also have to know that the actions of the SICAV may be Nominal or Bearer. Their difference lies in the right to vote, that the nominal ones are worth one vote per share while the bearer gives the holder the opportunity to cast one vote even if you have more than one. This is to prevent opportunistic behavior by shareholders. In any case, however, the bearer shares can be converted into nominal and vice versa.


Finally, you should know that in order to ensure that management should not be to the disadvantage of small investors, the Fund must comply with strict rules laid down by the Bank of Italy. In fact, the management of the Fund must be transparent, aimed to provide their subscribers a spreading risk.In this sense, the Bank of Italy has provided for the Fund and other intermediary institutions, tests to be administered to applicants to assess their skills and level of investment risk which can withstand. In addition, the Bank of Italy makes available to those who are interested in the Consolidated Finance Act that lists all the rules governing the SICAV and more also offers consultations to clarify the public for ideas to those who are really interested. .