Feeder Fund/Access Fund
A feeder fund (“Feeder”) or Access Fund is an investment vehicle, often a limited partnership, that pools capital commitments of investors and invests or “feeds” such capital into an underlying fund, often called a master fund. The feeder fund is a pass-through vehicle with the sole purpose of transferring the funds to the master fund (or funds) that performs all the investments.
All the investments done through Ifunds use a feeder fund. The feeder funds are managed by Icapital and they protect the Israeli investors from US tax or any other international taxes. Because all the feeder funds are managed by Icapital, the periodic reports are identical, and the investor can access his reports and see the returns directly in the platform. The feeder fund has its own management fee which is additional to the fees of the master fund.