AFSA Launches First Multifund Unified Investment Vehicle
Fonte Emerging Markets Umbrella Fund OEIC Limited Becomes First Umbrella Fund in Astana International Financial Centre
ASTANA—The Astana Financial Services Authority (AFSA) recently registered Fonte Emerging Markets Umbrella Fund OEIC Limited as the first umbrella fund in the Astana International Financial Centre (AIFC) on June 25. This milestone marks a significant development in the financial services industry within Astana.
The Fonte Emerging Markets Umbrella Fund OEIC Limited serves as an investment vehicle that consists of several sub-funds, each with distinct investment objectives and strategies, while operating as a single legal entity. According to the AIFC, the sub-funds within this umbrella fund represent separate investment portfolios within the central fund, each with its own investment goals, strategies, and assets. The fund utilizes internal mechanisms to segregate the assets and liabilities of the sub-funds.
Umbrella funds offer various benefits to investment firms, including the pooling of assets from multiple sub-funds, which can lead to lower operating costs. This approach is particularly advantageous for smaller investment firms, as it helps them manage the financial and administrative burdens of multiple standalone funds more efficiently.
Moreover, umbrella funds provide flexibility in terms of investment products, allowing investment managers and advisors to create a diverse range of sub-funds tailored to different investment strategies and asset classes. This flexibility enables firms to meet the needs of a wider range of clients, including offering socially responsible investment options based on specific environmental, social, and governance (ESG) criteria.
Additionally, umbrella funds streamline administration and management processes by operating under a single legal and organizational structure. This unified framework simplifies compliance with regulatory requirements for investment managers and advisors, ensuring consistent management of all investment products. By reducing complexity and the potential for errors, the administrative efficiency of umbrella funds benefits both investors and financial market participants.
Nurkhat Kushimov, Chief Executive Officer of AFSA, emphasized the importance of regulatory advancements that enable new fund structures, noting that they provide more options for investors and contribute to greater economic diversification. As the regulatory environment at AFSA continues to evolve, the development of more advanced concepts aims to deliver enhanced value to markets and consumers alike.
Overall, the registration of Fonte Emerging Markets Umbrella Fund OEIC Limited as the first umbrella fund in the AIFC represents a significant step towards fostering innovation and growth in the financial services sector in Astana.
