Aditum Investment Management continues to capitalise on the change in regulation in the Middle East, launching another UAE-domiciled feeder fund in partnership with a UK manager, Citywire Middle East can reveal.
The $6.88bn in AUM asset manager has tied up with Fundsmith to launch the new fund, Fundsmith Global Equity Fund IC Open Ended, in the third quarter of 2024, the firm said in a statement.
The new fund will give UAE-based clients access to Fundsmith’s global equity strategy through a feeder fund structure. The strategy, which was launched in November 2010, invests in a concentrated portfolio of blue-chip equities.
‘We believe the underlying strategy is perfect for clients seeking exposure to global equities through a market leading firm which manages the largest retail fund in the UK,’ said David Marshall, Aditum’s SEO.
‘Aditum’s ability to react to the market environment and regulatory changes quickly – as well as our proven track record in efficiently and successfully structuring and operating funds across multiple jurisdictions and with the major platform links that are essential to successful product distribution – presents a compelling opportunity for investors,’
Fundsmith had assets under management of $47.3bn, as of 28 June 2024.
The UK manager’s partner, Peter Jackson added: ‘We have seen increasing interest from the UAE in Fundsmith’s award-winning, high conviction strategy and are very pleased with how efficiently and quickly the fund has become a reality.’
The feeder fund marks Aditum’s eighth under the Aditum Global Access ICC platform, following the launch of four funds with Standard Chartered and Amundi and a short-dated invested fixed maturity fund with Principal Global Investors.
Aditum plans to launch three feeder funds into its own Ucits strategies and two direct securities products, the firm said.
Since April 2024, foreign funds can no longer be promoted to onshore UAE retail investors. The regulation was aimed at boosting the onshore UAE local funds market. As a reuslt, foreign asset managers have partnered with feeder funds domiciled in the UAE to give retail investors access to its funds.