Feeder Fund

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Feeder Fund

A mutual fund or other fund that invests exclusively in another fund. Shares of the feeder fund represent shares in the second fund (called a master fund), which, in turn, represent shares in the underlying securities. Feeder funds are relatively common when the master fund contains tax disadvantages for shareholders that the feeder fund remedies. See also: Fund of funds.
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Trustee Irving Picard announced the latest settlement Monday with so-called feeder funds -- Herald Fund SPC and Primeo Fund, both undergoing liquidation in the Cayman Islands.
papers to investors in the private feeder funds into the Master Fund
Feeder funds are basically UITF that can invest to 90 percent of the portfolio in a one target fund," Javier said.
In the weeks that followed, JPMorgan withdrew about $300 million of its own money from Madoff feeder funds.
Breeden defended the move and said he prioritised returning cash to Madoff's victims over Picard's negotiations with various feeder funds.
We believe this settlement - coupled with the Trustee's recent settlements with the Fairfield Sentry, Greenwich Sentry and Greenwich Sentry Partners feeder funds - sends a strong message that the financial community cannot deliberately ignore indicia of fraud," said David Sheehan, a partner at Baker & Hostetler, the court-appointed counsel for the Trustee.
Feeder funds gather money from investors and channel the money into larger funds.
9 billion to Madoff through feeder funds in Europe, the Caribbean and Central America.
s Merrill Lynch unit, received money through Madoff feeder funds when they knew or should have known that his investments were a fraud.
Court-appointed trustee Irving Picard has accused HSBC of helping Madoff's scheme by creating a dozen so-called feeder funds across the world.
Court-appointed trustee Irving Picard has accused HSBC of helping Madoff 's scheme by creating a dozen so-called feeder funds across the world.