SGIIC
What are they?
SGIICs (Collective Investment Scheme Management Companies) are regulated entities responsible for managing and administering investment funds or other collective investment vehicles. These companies have the responsibility of making investment decisions on behalf of investors and managing the fund’s assets efficiently in accordance with current regulations.
The main objective of SGIICs is to maximize returns for investors within the established risk parameters, following a previously defined investment policy. These entities manage both open and closed-end investment funds, and their role is crucial in the structuring and management of the funds, which includes asset selection, making buy and sell decisions, and overseeing profitability.
Key aspects to consider
SGIICs must be authorized and supervised by national regulatory bodies, such as the Comisión Nacional del Mercado de Valores (CNMV) in Spain, to ensure compliance with current regulations and the protection of investors’ rights. It is important for investors to understand the investment policies these companies apply and how their experience and strategy influence the performance of the funds.
When choosing an SGIIC, investors should evaluate the entity’s solvency and track record, as effective and ethical fund management is essential for achieving good returns. It is also relevant to consider the fees that the SGIIC may charge, as these can affect the fund’s net returns.
Moreover, it is advisable for investors to research whether the SGIIC maintains adequate diversification in its managed assets, as this can help mitigate risks associated with a single asset class or sector.