The PFS Prodigy Asia Emerging Markets Fund (“the UK Fund”), a UK UCITS fund and sub-fund of the PFS Prodigy Capital Partners Fund, was successfully merged into the Prodigy Asia & Emerging Markets Fund (the “Luxembourg Fund”), a sub-fund of the Independent UCITS Platform, the brand name of a Luxembourg SICAV.
Under the merger arrangements, two new share classes, one institutional and the other retail, have been created in the destination Luxembourg Fund, allowing the NAV series of the UK fund to continue after the merger. The merger of the two UCITS funds is one of the first made possible by new provisions governing cross border fund combinations under UCITS IV.
Hugh Hunter, CEO of Prodigy Capital Partners LLP, manager of the Luxembourg Fund, said “the merging of the two funds we manage will bring significant benefits to shareholders of both funds. By removing one entire set of overheads, the merger will create economies of scale and lower overall fund costs. In addition, as investment managers we can focus on one single fund and streamline the investment process. The merger has been structured to allow all previous NAV histories to remain unbroken. The transaction is unusual in that it is one of the first under new provisions for fund amalgamations under UCITS IV, and follows the similarly ground-breaking re-domiciliation of our Cayman fund to Luxembourg. Such transactions demonstrate the options available to managers of Cayman based funds for bringing the funds they manage under the European regulatory regime, thereby substantially enhancing the marketability of those funds”.