Feeder Fund
What Does Feeder Fund Mean?
A fund that conducts virtually all of its investing through another fund (called the master fund).
Investopedia explains Feeder Fund
This is similar to a fund-of-funds arrangement, except that the master fund manager is responsible for managing the underlying investments.
Often, an onshore feeder fund will invest in an offshore master fund. This is done so that the foreign master fund can gain a tax advantage for the domestic investors.
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