AB turns €2.7bn FCPs into Sicav sub-funds

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AllianceBernstein (AB) will convert its Luxembourg-domiciled Ucits portfolio AB FCP I into a Sicav structure, the AB Sicav I, on 4 May 2018, InvestmentEurope has learned.

In a note to shareholders seen by InvestmentEurope, AB said the funds concerned by the conversion are the AB FCP I – European Equity Portfolio, the  AB FCP I—Eurozone Equity Portfolio, the AB FCP I—American Growth Portfolio and the AB FCP I—All Market Income Portfolio, gathering over $3.3bn (€2.7bn) as of end December 2017. Investment policies of the funds remain unchanged.

“The purpose of the restructuring is to convert the portfolios from a contractual type of fund (fonds commun de placement) into a corporate type of fund (a société d’investissement à capital variable). The corporate type of fund (a société d’investissement à capital variable) is a much more commonly used legal fund structure, is well-received by institutional and retail investors currently around the world, and increasingly the preferred legal fund structure for global distributors,” the company argues.

It is the belief of AB’s board of managers that the restructuring could ease each portfolio’s worldwide distribution, expanding potential for assets increase and reducing costs for shareholders.