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S&W Enterprise fund converts to Ucits III structure

Smith & Williamson has converted its Cayman-Islands domiciled enterprise fund into a Dublin-domiciled, Ucits III vehicle.

The group had been planning to launch a retail version of the fund. However, Nick Hodgson, the director and head of marketing at S&W, says for economies of scale it decided to change the domicile.

For this it needed both shareholder and regulatory approval, which it subsequently achieved and on January 18 the £75m fund became a Dublin-domiciled Ucits III vehicle.

Hodgson says: “In our eyes it is clear that following the hedge fund crisis investors wanted greater transparency and greater liquidity. As such the fund is now in a regulated environment and has moved from monthly dealing to daily dealing which means it is more liquid.”

Plans to launch a separate retail version of the enterprise fund were postponed in March last year following the resignation of Mark Boucher, who was co-manager. He co-managed the fund with Rupert Fleming, who is now lead manager and has managed the fund since its launch in April 2006.

By making the fund Ucits III compliant Hodgson says Fleming does not have to change the way he runs money on the fund. On the Cayman-Islands vehicle he used contracts for difference to short companies.

The fund now has five share classes, with the retail share class with the E share class requiring a minimum investment of £1,000, plus a 1.75 per cent annual management charge. It also carries a 20 per cent performance fee, with a high water mark.


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