East Capital plans a master-feeder structure to enable investors in its Luxembourg Sicav funds to invest into three new funds: the East Capital Baltic Fund, the East Capital Balkan Fund andthe East Capital Turkey Fund.
The emerging and frontier market specialist says the master-feeder structure will increase operational efficiency and enhance its distribution efforts internationally.
Albin Rosengren, partner and chief executive officer of Stockholm-based East Capital, says Europe is increasingly converging as a single market, but greater regulation and reporting requirements risk increasing administration and legal costs.
“Due to recent measures introduced under Ucits IV fund managers can convert to a master-feeder structure and realise greater efficiencies in their operating models,” Rosengren says, adding that investors will benefit from a broader fund offering and lower management fees.
By October 1, East Capital’s five Swedish Ucits funds will have been converted into feeder funds investing their assets in the corresponding master funds, under East Capital’s existing Luxembourg Sicav umbrella.
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