What does a Feeder Fund primarily invest in?

A Feeder Fund primarily invests in a single collective investment scheme, which is a fund that pools investor capital to invest in a larger, more diversified investment vehicle, such as a master fund. The purpose of a Feeder Fund is to channel investments from multiple investors into this overarching fund, allowing them to benefit from the investment strategies, management expertise, and potential economies of scale that come from a larger fund structure.

This structure is beneficial for individual investors as it provides access to investment opportunities and diversification that they may not achieve on their own or through smaller investments. By focusing on a single collective investment scheme, Feeder Funds enable investors to participate in broader investment strategies and asset classes that might otherwise be out of their reach.