Rathbones is to make changes to its Luxembourg-domiciled Sicav in preparation for a post-Brexit regulatory environment.
In 2016, Rathbones established its Luxembourg-domiciled Sicav with feeder sub-funds into the Rathbone Ethical Bond, Rathbone Multi-Asset Total Return, Multi-Asset Strategic Growth, and Multi-Asset Enhanced Growth Portfolio Funds.
Later that year, a further sub-fund was launched as a feeder for the Rathbone Income Fund. Currently, 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, thus ending the ability to market the funds in the European Union (EU).
Therefore, directly-invested funds will be created in Luxembourg for 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; the Rathbone Income Funds managed by Carl Stick and Alan Dobbie, and the Rathbone Ethical Bond Funds managed by Bryn Jones and Noelle Cazalis.
Non-EEA Alternative Investment funds
These new vehicles will follow the same investment strategy as the UK-domiciled funds, the firm said and the move will allow existing investors in the Sicav to continue to maintain their investments.
After March 29, Rathbones’ UK domiciled unit trusts and Oeics will be known in the EU as “Non-EEA Alternative Investment funds” (AIFs).
Rathbones said that investors in Europe who are invested in any of these funds should be able to continue to do so. However, converting the Luxembourg-domiciled sub-funds from feeder funds into directly-invested funds will allow investors to benefit from the same investment strategies and process, and with the same fund managers as before, within a Ucits framework.
All legal, administrative and transaction costs associated with the conversion will be borne by Rathbones.
Mike Webb, chief executive, Rathbone Unit Trust Management, 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.”