Rathbones makes changes to Luxembourg range ahead of Brexit
Rathbones is to make changes to its Luxembourg-domiciled Sicav that will allow European investors to continue to have access to these funds after Brexit.
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.
After March 29, Rathbones' UK domiciled unit trusts and Oeics will be known in the EU as "Non-EEA Alternative Investment funds" (AIFs). 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.
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"
The company did not immediately disclose how much client money would be affected by the change.
The Rathbone Multi-Asset Total Return portfolio runs the majority of its assets for EU-domiciled clients with €463m (£405m) in its euro-denominated share class, versus £294m in its GBP shares.
The company's £1.2bn Ethical Bond fund runs approximately £43m in its euro share class, although in both cases euro denomination may not be an exact guide to where the cash originated.
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.
RUTM chief executive 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."
All legal, administrative and transaction costs associated with the conversion will be covered by Rathbones.
