Collective Investment Scheme (“CIS”)

A type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment. The scheme or fund is divided into segments called ‘units’, which are to some degree similar to shares. Investors take a stake in the fund by buying these units – becoming unitholders. The price of a unit is based on the value of the investments the fund has invested in (see also Net Asset Value and mutual fund).