SGAM wins approval to offer Lux subfunds

Following recent authorisation from the Financial Services Authority, distributor share classes for the funds will be made available in Britain with immediate effect. The new range includes eight funds that are currently managed by the group’s US-based sister company, TCW.

According to Mikkel Bates, head of marketing for SGAM, the group has been planning to increase access to funds from across its range for the last two years. In particular, SGAM plans to focus on making what it calls its various centres of excellence more available to clients.

“Our British clients now have access to our TCW funds, which is the American equity specialist part of our group,” he says.

According to the group, the distributor share classes were created in response to growing demand from UK clients. SGAM’s British client base, which primarily includes multi-managers and discretionary managers, was particularly interested in the core and specialist American funds managed by TCW. This includes the US Large Cap Growth fund, which is in high demand in Europe, says Bates. The fund returned 4.17% over one year to February against its benchmark, the Russell 1000 Growth index, which returned 6.3%.

Other TCW American funds that will be offered to British investors include the US Value Opportunities fund, Relative Value fund, Multi Strategies fund, Mid Cap Growth fund, Concentrated Core fund, MBS bond and High Yield bond.

The four funds now available in the UK that were not part of the TCW range include the Europe High Yield bond, China fund, Japan Concentrated Value fund and Eastern Europe fund. SGAM chose to offer these funds in the UK as it previously had no onshore equivalent offering in these sectors. The group also currently offers 19 UK-domiciled funds.

The move comes as a result of the tax changes in last year’s Budget, which allow Luxembourg-domiciled funds to gain distributor status in Britan at a share class level. Previously, offshore funds could be considered for distribution in Britain only if all sub-funds under the umbrella met distribution criteria.