Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Fund platform to ease European market access for Asian, African and Middle Eastern fund strategies

Monday, June 06, 2016
Opalesque Industry Update - Standard Chartered Bank together with FundRock Management Company S.A. (FundRock) are launching a new multi-manager fund platform solution for Asian, African and Middle Eastern based asset managers looking to explore Luxembourg domiciled Undertakings for Collective Investment in Transferable Securities (UCITS) structures.

The Luxembourg “Straight2UCITS” fund platform solution will offer a simpler, faster and more cost effective way for Asian, African and Middle Eastern based investment managers to access the UCITS brand for global distribution. By using a dedicated Luxembourg UCITS umbrella structure, the platform will allow boutique managers and those new to cross-border distribution to build assets and track record through dedicated and entirely segregated sub funds, without the expense and time required to create and manage their own UCITS fund.

The Straight2UCITS model creates a simplified ‘go to market’ proposition with complete infrastructure allowing managers to launch, operate and distribute dedicated UCITS sub funds all within a robust risk and compliance control environment. The low set up costs and reduced administrative burden ensure speed to market and Total Expense Ratio (TER) efficiencies for managers and their end investors.

Margaret Harwood-Jones, Head of Investors & Intermediaries at Standard Chartered said: “Whilst a UCITS structure is desirable for many asset managers looking to increase their profile and their distribution capabilities, the reality is that the set up of a UCITS fund can be expensive, time consuming and if not sufficiently distributed, at risk of failure.

“Straight2UCITS offers asset managers and fund promoters a unique tool to distribute their investment expertise via a dedicated and entirely segregated sub fund within an existing Luxembourg UCITS fund structure.”

Revel Wood, CEO of FundRock added: “At FundRock we are dedicated to supporting connectivity across markets. We are delighted to make the launch of the Straight2UCITS platform possible through our best-in-class infrastructure, substance and market expertise.

“We are building on our long track record of supporting Asian managers distribute their funds in a compliant and secure way, by partnering with Standard Chartered to deliver a reliable, cost effective solution.”

Luxembourg is gaining greater attention from asset managers as a domicile of choice for their cross-border investment funds. Last year the People's Bank of China announced the granting of a 50 bn RMB RQFII (RMB Qualified Foreign Institutional Investor) quota to Luxembourg, enabling the country’s investor base to invest on the Chinese capital market, and making Luxembourg an attractive proposition for Asian based asset managers.

According to the Association of the Luxembourg Fund Industry (ALFI), there are over €3 trillion in assets under management domiciled in Luxembourg, making it the second largest investment fund centre in the world after the US.

Jill Griffin, CEO of Standard Chartered Luxembourg commented: “Luxembourg is a key domicile for cross-border fund distribution and a leader in the UCITS field. UCITS are popular for managers all over the world and are recognised as the go-to fund for increasing distribution.

“Through our depositary branch in Luxembourg, we’re able to offer our custody and depositary bank services via a unique platform to our Asian, African & Middle Eastern asset manager clients wanting to widen their distribution. They’ll have the reassurance of a financially sound provider who can facilitate direct access to custody and clearing services across an unparalleled 39 markets, whilst keeping their valued client service and relationship management teams in their own home markets.”

FundRock, Luxembourg’s largest fully capitalised independent UCITS fund management company (ManCo) and Alternative Investment Fund Manager (AIFM), will act as the fund initiator and Luxembourg ManCo of the UCITS Société d'Investissement à Capital Variable (SICAV) with Standard Chartered acting as depositary and custodian bank.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1