Investing in a regulated and transparent fund structure is a priority for many investors seeking both security and performance. At Provenance, our Harmony and Dynamic Funds operate under the UCITS (Undertakings for Collective Investment in Transferable Securities) framework, ensuring high standards of investor protection, liquidity, and risk management. But what does UCITS compliance mean, and why does it matter?
What is UCITS and why is it important?
UCITS is a European regulatory framework designed to ensure that investment funds meet strict risk management, transparency, and investor protection criteria. It is widely recognised as a gold standard for investment funds, providing access to diversified and well-managed portfolios with strong regulatory oversight.
How UCITS benefits investors
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Strict regulatory oversight
UCITS funds are subject to rigorous supervision by financial authorities, ensuring compliance with laws designed to protect investors. Harmony and Dynamic Funds are licensed and regulated under the Malta Financial Services Authority (MFSA), maintaining the highest standards of governance and reporting. -
Diversification & risk management
The UCITS framework imposes diversification rules, preventing excessive exposure to any single asset or sector. This approach reduces volatility and enhances long-term stability, making UCITS funds a resilient choice for investors. -
Liquidity & transparency
UCITS funds must provide regular liquidity, allowing investors to enter or exit positions without significant restrictions. Additionally, fund managers must disclose holdings and performance data, ensuring full transparency. -
Global recognition & accessibility
UCITS funds are widely accepted across international markets, providing investors with a globally recognised and trusted investment structure. This makes them particularly appealing to both institutional and private investors.
Dynamic vs. Harmony Fund – two strategies, one standard
At Provenance, both of our funds are structured within the UCITS framework but cater to different investor needs:
- Dynamic Fund – A high-growth investment strategy focused on market agility, delivering 98.15% cumulative performance with 6.98% realised alpha. It actively adapts to market shifts, optimising opportunities for investors.
- Harmony Fund – A stability-focused fund that balances risk and return, ensuring steady cumulative performance of 90.64% and 5.35% realised alpha. Designed for investors who prioritise capital preservation and long-term growth.
Conclusion
UCITS compliance is more than a regulatory requirement—it’s a stamp of quality that provides security, transparency, and performance potential. Whether you seek the growth-driven strategy of Dynamic Fund or the stability of Harmony Fund, Provenance ensures that every investment is backed by the highest industry standards.
🔹 Interested in learning more? Explore our funds and see how UCITS compliance works to your advantage.
