The European Securities and Markets Authority (Esma) last
week called for all hedging arrangements at share class level
– with the exception of currency risk hedging
– to be set up as separate funds or sub-funds.
The opinion, published on January 30, discusses the extent
to which different types of share classes of the same
Undertakings for Collective Investment in Transferable
Securities (Ucits) funds can differ from one another. It
targets four key areas where Esma believes more consistency is
required on the issue: a common investment objective,
non-contagion, pre-determination and transparency.