A feeder fund's principal objective is to invest in another fund (the master fund). Such funds may be authorised as a non-UCITS fund and as either a master fund or as a feeder fund. The feeder fund and the master fund may be domiciled in different jurisdictions and may also be set up as different legal structures. 

Master Fund

The Manger of the master fund must waive any sales charge in relation to the issue of units/shares to the feeder fund.

Feeder fund

A feeder fund may invest in a master fund authorized in Ireland or elsewhere so long as the master fund is subject to regulations which provide for equivalent protection of investors' interests. The Financial Regulator Notice NU 22 specifies certain conditions necessary for a master/feeder fund structure.