Master Fund

(redirected from Master Funds)

Master Fund

A mutual fund or other fund that allows a shareholder to have access to other investment vehicles. For example, a master fund may be a fund of funds, which is a mutual fund that invests in other mutual funds. Likewise, it may be a mutual fund in which a feeder fund invests. In the latter case, shares of the feeder fund represent shares in the master fund, which, in turn, represents shares in the underlying securities. Master funds and similar structures are relatively common when the one fund or the other contains tax disadvantages for shareholders that the other fund remedies.
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Master funds and many other investment partnerships traditionally have not made Sec.
The investment partnership and securitization partnership exceptions discussed above should be considered, although most hedge funds and master funds will probably not qualify due to the restrictions on redemptions, the requirement to issue partnership interests within 24 months and the limit on the life of the partnership to 15 (or 20) years.