MAKING THE MOST OF UCITS IV

Client profile & objectives

You are an EU regulated Management Company with a large presence in your home market and you manage both UCITS and non-UCITS funds.

capabilities beyond your domestic borders and seizing new business de- velopment opportunities. Indeed, you are aware that regulated, transpa- rent and liquid products such as UCITS are more and more attractive to investors globally (in Europe but also in Asia, Latin America, etc.). In ad- dition, you believe that investors have a preference for a well established international brand like UCITS rather than for domestic products that have never been distributed abroad, despite their excellent track record on their local market. You target all investor categories, including the retail inves- tors, as you do for your domestic UCITS range. You obviously want to keep your existing domestic clients, while expan- ding your client base cross-border through the use of the UCITS IV tool- box. It will influence your approach.

Your current UCITS range covers a wide selection of traditional strategies, from equity to monetary and bond investment policies in which you have gained extensive expertise and an exemplary track record. Your existing UCITS funds are open to all investor categories, including the retail inves- tors. The UCITS range you manage for your domestic market represents a solid foundation for expanding distribution abroad. However, you have limited experience in cross-border distribution. You have built up your existing organisation (asset management and dis- tribution platforms, operations, risk management, etc.) so that it suits to your domestic market. This structure is efficient and has been responding well to your needs so far. Objectives You now have the objective to increase the assets under management in your existing UCITS funds by extending your distribution

Possible scenarios

To reach your objectives, you may choose between three different ap- proaches.

Possible scenarios

Cross-border distribution of your domestic UCITS using the notification procedure. In some countries, the creation of a local feeder might facilitate the distribution of your UCITS

Scenario 1

Creation, in addition to your domestic UCITS, of a UCITS range in a cross-border distribution centre (e.g. Luxembourg or Ireland) through the use of the Management Company passport

Scenario 2

Creation of a UCITS range in a cross-border distribution centre (master UCITS), while transforming your domestic UCITS range into feeder UCITS

Scenario 3

page 8 | CACEIS - UCITS IV