Rathbones has announced changes to its Luxembourg-domiciled SICAV range that will allow European investors to continue to have access to these funds after the UK exits the EU.
The changes apply to the range launched by Rathbone Unit Trust Management (RUTM) in 2016, which consists of feeder sub-funds into the Rathbone Ethical Bond, Rathbone Multi-Asset Total Return, Multi-Asset Strategic Growth, Multi-Asset Enhanced Growth Portfolio and Rathbone Income funds.
Under the current structure, the Luxembourg-domiciled feeder-funds invest into the UK domiciled master funds; however, Rathbones expects that after 29 March the current UCITS status of the master-feeder arrangement will end, meaning they will no longer be able to market this structure across the EU.
As a result, the group is setting up directly-invested funds in Luxembourg form the the Rathbone Multi-Asset Total Return, Multi-Asset Strategic Growth, and Multi-Asset Enhanced Growth Portfolio funds managed by David Coombs and Will McIntosh-Whyte; Rathbone Income managed by Carl Stick and Alan Dobbie, and Rathbone Ethical Bond managed by Bryn Jones and Noelle Cazalis.
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These new vehicles will follow the same investment strategy as the UK-domiciled products, with the aim of allowing existing investors in the SICAV to continue to maintain their investments.
After the 29 March, Rathbones' UK domiciled unit trusts and OEICs will be known in the EU as ‘Non-EEA Alternative Investment funds' (AIFs).
The group believes European investors with existing holding in these vehicles may be able to remain invested, but converting them from feeder funds to directly invested vehicles will allow investors to remain within the UCITS framework.
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All legal, administrative and transaction costs associated with the conversion will be borne by Rathbones.
RUTM CEO Mike Webb said: "With continued uncertainty surrounding the UK's post-Brexit relationship with the EU, Rathbones has taken all reasonable steps to ensure that its Luxembourg-domiciled fund range remains distributable in the EU."
