Esma’s Ucits share class opinion hits hedging

Author: Tom Young | Published: 23 Feb 2017

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.

Perhaps most...