France has experience using this structure
For several years, the French fund management industry has used master-feeder funds. "France is one of the countries with the most experience at national level using this structure for which we have actively lobbied at European level, explains
Stéphane Janin, Head of the International Affairs Division at the AFG(French Asset Management Association). Moreover, the European Commission consulted us on how our members use the structure." Consequently, even if the cross-border dimension opens up numerous new horizons, French companies will have a competitive edge, in particular as regards marketing and from a legal point of view. "Moreover, we must not forget that numerous French UCITS, potential master funds, have a significant performance history and, on average, substantial assets under management. These are reassuring arguments for investors", adds Stéphane Janin who notes, incidentally, that according to a recent survey carried out by Euroland Consulting, 38 % of French asset management companies already had master-feeder structures before Ucits IV and that 87 % of the French asset management companies that intend to use the system proposed by the directive plan to domicile their master funds in France.