Feeder fund

Feeder fund — a locally-registered fund that invests all its assets into a single offshore target fund, giving peso investors global exposure through an SEC-regulated wrapper with no foreign broker and no US-situs exposure of their own. The price is the fee stack (typically 1%+ a year on top of the target fund’s own fee) — comfort you can now cost precisely against a 0.22% direct alternative. Branch C of lesson 1.6’s decision tree.

First used in: 1.6 · Cross-border plumbing