Axa to convert Gledhill’s high yield fund to a ‘feeder’
High yield fund converted to ‘feeder’ fund for Luxembourg Sicav under Ucits IV rules.
Axa Investment Managers is seeking to convert James Gledhill’s £27.8m Axa Pan European High Yield Bond fund to a ‘feeder’ for a Luxembourg-domiciled Sicav.
The firm has written to investors outlining its desire to utilise Ucits IV rules to “reduce operational costs” by aligning the onshore fund with the Axa WF European High Yield Bonds fund, based in Luxembourg.
Mr Gledhill, who joined Axa from Henderson last year, manages both funds under similar investment objectives and strategies. He took over management of the funds from Andrew Wilmont, who left in August for BNY Mellon subsidiary Alcentra.
Ucits IV rules allow fund managers to have ‘feeder’ funds set up in different jurisdictions to pool money into a ‘master’ fund. Axa has already received FSA approval for the conversion.
A spokesperson for Axa IM said the firm had no plans to repeat the conversion with any other funds. Several of its other Luxembourg-domiciled funds are registered for sale in the UK using a Ucits passport instead of a feeder fund.