The Potential Impact of Brexit on Sarasin Funds
As you would expect, we have been monitoring the situation with regard to how Brexit might impact investors in our funds, regardless of how the UK’s exit from the European Union (EU) may be concluded following the expiry of the transitional period on 31 December 2020.
We hope that all of our investors can continue to access Sarasin’s funds, and we have set out our thoughts below on those matters which we feel will be of interest to investors in our UK and Irish fund ranges.
Information for investors in our UK Fund Range
UK resident investors in our UK fund range, offered by Sarasin Investment Funds Limited, are not required to take any action as a result of Brexit.
The impact to our UK fund range following the UK’s departure from the EU has been limited by the fact that it has been marketed primarily to UK investors.
However, we expect that, following the end of the transitional period, UK-domiciled UCITS funds will no longer qualify as UCITS albeit we do not expect this to impact the majority of investors in our UK fund range. Importantly, following Brexit, all of the funds within our UK fund range are and, after the end of the transitional period, will continue to be, managed in the same way, with the same investment objectives and by the same investment teams at Sarasin and Partners LLP in London.
If you are an investor from an EU27 State currently invested in our UK fund range, you will need to decide whether you are, or will be, permitted to continue to hold that investment by the laws and regulations of your Home State. For such investors, please note that, following the end of the transitional period on 31 December 2020, you will continue to receive the same periodic reporting with respect to your investment as you currently receive. Such reporting is not intended to constitute marketing activities and any decision by you to make any further investment in the relevant fund should be carried out independently and without reliance on the reporting provided by us to you.
Information for investors in our Irish Fund Range
Investors in our Irish fund range, offered by Sarasin Funds Management (Ireland) Limited, are not required to take any action as a result of Brexit.
Our Irish fund range will continue to qualify as UCITS funds domiciled in the EU. Importantly, following Brexit, all of the funds within our Irish fund range are and, after the end of the transitional period, will continue to be, managed in the same way with the same investment objectives. Following recent announcements by the European Securities and Markets Authority (ESMA), the European Commission and other European regulatory bodies on co-operation agreements, we believe that it will be possible to continue to delegate portfolio management activities for EU funds to UK Investment Managers after the transitional period ends. Therefore, all of the funds within our Irish fund range will continue to be managed by the same investment teams at Sarasin & Partners LLP in London after 31 December 2020.
The UK Government and the Financial Conduct Authority (FCA) have implemented the UK Temporary Permissions Regime. This will allow EU-based funds, such as our Irish fund range, to continue to be sold into the UK market for a period of time following the expiry of the transitional period. We have now registered all of our Irish fund range in order to take advantage of these temporary permissions.