Societe Generale Securities Services (SGSS) has launched "Manco by SGSS", a management company solution to assist asset managers seeking access to the European market to set up and market Undertakings for Collective Investments in Transferable Securities (UCITS).
In July 2011 the UCITS IV Directive established a single harmonised regulatory regime for open-ended investment funds. The Directive ensures high levels of investor protection, and at the same time provides the framework for launching funds within the European Economic Area (EEA) by offering asset managers the opportunity to distribute UCITS funds throughout the Area via a compliant Management Company (ManCo) registered in the EEA.
SGSS' own in-house ManCo, which has built up a proven track record alongside risk management expertise for UCITS, is extending its licence to accompany asset managers in their growth strategy within the EEA.
By using "ManCo by SGSS", asset managers will be able to set up funds remotely, without bearing the associated infrastructure costs or managing the registration process, and outsource to SGSS the entire administrative process required to become UCITS compliant.
With "Manco by SGSS", it is "Our Passport = Your Access" and enables asset managers to focus on their core activities: investments and high value relationships with their investors.
"ManCo by SGSS" is responsible for:
• Setting-up and structuring the UCITS, covering all administrative, legal and regulatory requirements, for launch within the EEA region,
• All regulatory requirements, such as risk management and reporting
• All necessary post-trade and fund services (Depositary, Fund Administration, General assembly meetings…)
• Distribution support through SGSS' extensive network of local European paying and facilities agency services in 14 EEA countries and "Master-Feeder*" fund structures.
All the services provided through "ManCo by SGSS" are supported by SGSS' comprehensive range of post-trade services adapted to the latest market and regulatory changes. This offer includes assistance with reporting for final investors and producing the Key Investor Information Document (KIID). In addition, asset managers benefit from SGSS' recognised expertise as a top European securities provider.
"European investors tend to invest in locally registered funds for asset and investment protection. However, they are willing to explore new investment options to benefit from the advantages provided by a diversified range of funds, as long as they are secure," says Etienne Deniau, Global Head of Business Development, Asset Managers & Owners at SGSS. "The regulated UCITS framework is a guarantee of security, both for European and worldwide investors. By enabling asset managers to launch UCITS to investors, "ManCo by SGSS" will create broader investment and business opportunities for investors and asset managers".
* An investment structure in which investors deposit capital in a "feeder" fund, which in turn invests in a "master" fund that is managed by the same investment advisor. The master fund is the entity that invests in the market as prescribed in the partnership agreement.