There are many types of umbrella funds depending on what domicile they come from. Sicas, segregated account companies and segregated portfolio companies are some examples.  These structures are widely used by asset managers looking to develop a business with more than one fund products and they also provide the flexibility to have ringfenced portfolios for individual clients.

 

Until now there has always been a question over whether these structures are robust in securing the assets in underlying accounts or portfolios from claims from the other accounts/portfolios in the same umbrella structure.

 

Three cases have shown recently that the Bermuda segregated account companies are secure and this is good news for these umbrella structures no matter where they are domiciled.

PH