CRUX to convert Pease's fund into directly-invested Luxembourg vehicle amid Brexit fears

Converting £1.9bn European Special Sits fund

CRUX Asset Management is planning to convert the Luxembourg-domiciled CRUX European Special Situations "feeder fund" into a directly-invested fund amid concerns around passporting once the UK leaves the European Union on 29 March.

The new directly-invested fund will replicate the UK-domiciled vehicle and will mirror it as closely as possible, although cash positions will vary due to differing flow dynamics and currency. CRUX said the move had been made due to the lack of concrete guidance around the UK's future relationship with the EU, forcing the firm to prepare for the worst-case scenario. In this scenario, the firm believes both the fund and the feeder fund will lose their UCITS status once the UK leaves the EU meaning the UK-domiciled fund will become a "non-EU alternative investment fund", as would the fe...