Ucits III: divergence in the fund of funds market

Fofs

European directive Ucits III will lead to some managers converting from the current chapter 5a to the new chapter 5 fund of funds. Here we examine the advantages and limitations of each

The adoption of the European directive Ucits III will lead to a divergence in the fund of funds (Fof) market, with some operating under existing rules and others converting to the new regime later this month. Now the Inland Revenue and the Fsa has resolved the Isa rules for what it terms chapter 5 funds, those that follow Ucits III rules and chapter 5a portfolios, old Ucits, the split between the services offered by multi-managers will lead to more distinction. Last month, Isis Asset Management announced it had been granted shareholder approval to convert its multi-manager Oeic to Ucits I...