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Dubai-based Aditum Investment Management debuted four public funds, operating under its incorporated cell company (ICC) structure in the Dubai International Financial Center (DIFC), according to a press release. Standard Chartered will act as fund administrator and custodian. Named Aditum Global Access ICC, it is the first fund structure to launch under the updated public fund regulations.
Uh…Enterprise, what’s an incorporated cell company? In the DIFC, fund platforms set up under an ICC, offering foreign funds a pathway to reach UAE onshore investors, while adhering to the new regulations restricting their promotion, with each ICC acting as an independent fund and legal entity, maintaining a separation of assets and liabilities.
Background: The Securities and Commodities Authority issued a decision prohibiting funds and asset managers outside of the UAE from being publicly offered for retail subscription in the UAE. The rule came into effect in April.
Aditum has more in the pipeline: Aditum has integrated 10 funds into the ICC structure so far, with the newly-launched four funds receiving initial subscriptions in May. Additionally, an eleventh fund is currently in the incorporation process. Aditum plans to introduce an Islamic multi-asset fund and a global fixed-income strategy in the upcoming weeks.
ICYMI- Standard Chartered was quick to adapt to the new regulatory system, partnering with securities depository Clearstream to include UAE-based funds on its Vestima platform enabling retail clients to invest in locally-domiciled funds.
IN OTHER CAPITAL MARKET NEWS-
The Abu Dhabi government listed USD 5 bn worth of sovereign bonds on the ADX on Friday, it said in an ADX filing (pdf). The first tranche consists of five-year bonds worth USD 1.75 bn, priced at 35 basis points over US Treasuries, yielding 4.97%. The second tranche comprises USD 1.5 bn in bonds yielding 5% and maturing in 2034. The third USD 1.75 bn tranche, carrying a 30-year tenor, carries a yield of 5.5%.
