SVM Asset Management (SVM) has moved three of the offshore funds in its Dublin Ucits structure onsh...
SVM Asset Management (SVM) has moved three of the offshore funds in its Dublin Ucits structure onshore in a bid to attract the attention of UK intermediaries and investors.
The firm, which was called Scottish Value Asset Management before the move, decided there were disadvantages to remaining offshore after advance corporation tax rule changes a few years ago which caused dividends to be treated exactly the same for an offshore fund as for an onshore fund.
Straight conversion to onshore funds was not an option for SVM because Dublin legislation gives a Ucits passport only to Dublin Ucits. This means that unlike a unit trust in the UK, which can convert into an Oeic, funds based in Dublin cannot, according to Mark Noble, UK sales manager.
The company has moved three funds onshore ' Continental Europe, UK opportunities and UK 100, which has been renamed UK 100 Select.
There are no tax advantages to the funds being offshore but there are disadvantages, according to Noble.
'The investment tools to show performance tend to exclude offshore funds from an onshore universe so in order for your performance numbers to be visible you have got to have it under a UK structure,' he said.
'That is a pretty strong reason for doing it because our numbers are very good on all these funds. It allows us to bring our performance record to the attention of intermediaries and investors in the UK.'
Investors have been offered the option of switching their investment with the funds, moving them to the remaining offshore funds or redeeming them.
SVM has been allowed to take the offshore performance record of the funds with them onshore.
'The IMA would not be allowing us to bring our offshore track record if there was any tax difference as that would mean our performance would have been different offshore and onshore,' he said.
Outlook for income
Chris St John to take over £3bn UK Select Opps