Non-UCITS Retail Schemes (NURS), including funds of funds, will now be able to invest in the feeder funds of master-feeder structures, providing access to many Luxembourg-domiciled SICAVs and Dublin-domiciled ICAVs for the first time.
Although NURS were previously able to invest in offshore funds, feeders were off limits due to concerns around the unnecessary layering of charges. However, effective from 1 October, the Financial Conduct Authority (FCA) has authorised NURS to be able to invest in feeder funds, provided an alternatives fund manager has taken a balanced view of the risks, costs, and benefits of investing in a feeder rather than a master fund, which is often less cost effective. A number of asset management firms including Pioneer, Jupiter, Fundsmith, and J.P. Morgan Asset Management offer master-feeder...
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