Legal Definitions - regional fund

A regional fund is a type of investment fund that strategically focuses its investments within a specific geographic area or economic bloc. Similar to a mutual fund, it pools money from many investors to create a diversified portfolio. However, unlike a broad market fund, a regional fund's portfolio is primarily composed of securities (such as stocks, bonds, or other assets) issued by companies or governments that operate exclusively or predominantly within a defined geographical region.

This approach allows investors to target growth or stability in particular parts of the world, potentially benefiting from specific economic trends, regulatory environments, or industry concentrations unique to that region.

• Example 1: The "Southeast Asia Growth Fund"

  An investment firm launches a fund specifically designed to invest in publicly traded companies based in countries like Vietnam, Indonesia, Thailand, and the Philippines. The fund manager believes these economies are poised for significant growth due to increasing consumer spending and infrastructure development. This fund would be considered a regional fund because its investment mandate is strictly limited to companies operating within the Southeast Asian region, rather than investing globally or across all emerging markets.

• Example 2: The "European Green Energy Fund"

  A fund is established with the explicit goal of investing in renewable energy companies and related technologies located solely within the European Union. This includes companies involved in solar panel manufacturing in Germany, wind farm development in Denmark, and electric vehicle battery production in France. This is a regional fund because its investments are confined to a specific economic and geographic bloc (the EU) and a particular sector within that region, allowing investors to capitalize on European policies and market trends favoring green energy.

• Example 3: The "California Tech Innovators Fund"

  An investment vehicle is created to invest exclusively in technology startups and established tech companies headquartered in California, particularly focusing on Silicon Valley and the greater San Francisco Bay Area. The fund aims to leverage the region's unique ecosystem of innovation, venture capital, and skilled workforce. This qualifies as a regional fund because its investment scope is geographically limited to a specific state and sub-region within a larger country, targeting a particular industry concentration found there.