Non-US Investing • Re: Fund's assets segregation from management firm in EU

I have read through the UCITS directive 2009/65/CE and I verified that it explicitly states the segregation of the fund's assets from the depositary (article 22, 8). However I can't seem to find any mention about the segregation of the assets from the management company.

At least in Italy we have “Testo Unico della Finanza” that explicitly states the segregation of the fund's assets from the management company. That is good, but, since it is a local regulation, I’m not sure it can be enforced in a non Italian country. Even though it is very likely that the other EU member states have equivalent regulations, if there was an EU directive it would be better.

Then I read the KID of one of my ETF (SWDA) and it says:

What happens if BlackRock Asset Management Ireland Limited is unable to pay out?
The assets of the Fund are held in safekeeping by its depositary, State Street Custodial Services (Ireland) Limited (the “Depositary”). In the
event of the insolvency of the Manager, the Fund’s assets in the safekeeping of the Depositary will not be affected.

And that is reassuring, but the prospectus instead says:

Fund Liability Risk
The Company is structured as an umbrella fund with segregated liability between its Funds. As a matter of Irish
law, the assets of one Fund will not be available to meet the liabilities of another. However, the Company is a
single legal entity that may operate or have assets held on its behalf or be subject to claims in other jurisdictions
that may not necessarily recognise such segregation of liability.

Which is not quite the same thing, indeed here segregation is meant between the funds of the company, not between the funds and the company.
So I'm still not fully convinced, can someone help me settle the question?

Statistics: Posted by Chigno — Thu Nov 14, 2024 4:45 am

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