A CCF is a contractual arrangement established under a deed, which provides that investors participate as co-owners of the assets of the fund. The ownership interests of investors are represented by ‘units’, which are issued and redeemed in a manner similar to a unit trust. 

The CCF is an unincorporated body, not a separate legal entity and is transparent for Irish legal and tax purposes. As a result, investors in a CCF are treated as if they directly own a proportionate share of the underlying investments of the CCF rather than shares or units in an entity which itself owns the underlying investments.

A CCF can be established as a UCITS fund (Undertakings for Collective Investment in Transferable Securities) or a non-UCITS fund.  Tax transparency is the main feature, which differentiates the CCF from other types of Irish funds. The CCF is authorised and regulated by the Irish Financial Regulator.