Schroders converts Dobbs’ fund to Ucits format
Schroders has converted Matthew Dobbs’ £515m Asian Alpha Plus fund into a Ucits structure, in a further sign that Mifid II proposals may be having an impact on product design.
The fund house, which moved its £1.2bn Managed Balanced fund from a non-Ucits retail scheme (Nurs) to a Ucits structure in December, has now done the same to Mr Dobbs’ portfolio.
As with the conversion of the Managed Balanced fund, Schroders did not link the latest change to the approach of the Mifid II rules, due to come into force on January 3 2018.
However, the directive’s plan to designate Nurs offerings as “complex” products, meaning they could only be sold to execution-only investors who have completed appropriateness tests, has caused concern.
A large number of the UK’s multi-manager and multi-asset offerings are currently structured as Nurs because of the wider investment powers available under this arrangement.
In a letter to Asian Alpha Plus investors, Schroders director Robin Stoakley said the portfolio would not behave differently as a result of the structural change.
“The main difference between a Nurs fund and a Ucits fund is that an investment manager has slightly wider investment powers under the rules applying to Nurs funds,” he said.
“The fund does not use these additional powers. There are no changes to the fund’s investment policy or objective.”
Investment Adviser reported last month that hopes have been raised that European regulators could back down over the complex product proposals.
One individual, who wished to remain anonymous, said a leaked version of the European Commission’s forthcoming delegated acts suggested the approach would change.
