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Wrap Fund and Fund of Funds


The differences between a wrap fund and a fund of funds are outlined in the table:

Fund of FundsWrap Funds
StructureUse only collective investment schemesUse only collective investment schemes
RegulationCollective Investment Schemes Control Act (CISCA)FAIS
TaxationChanges to the underlying collective investment schemes will not trigger a CGT event. Disinvestment from the fund triggers a CGT event.Changes to the underlying collective investment schemes in the wrap fund will result in a CGT event.
ReportingA fund of funds is a registered CIS and is obliged to report performance quarterly to the regulator.Wrap funds are not registered and therefore not obliged to publish performance figures.


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