HSBC Securities Services, part of HSBC’s Global Banking and Markets business, has been mandated by Rathbone Unit Trust Management (Rathbones) to provide custody and fund administration services for its new Luxembourg-domiciled Sicav fund.

The fund offers Europe-based investors access to Rathbones’ UK funds. HSBC designed and implemented the operating model to support the master-feeder structure, which enables access from Luxembourg into the UK master fund, which is also serviced by HSBC. The structure ensures that European investors into the feeder fund have access to the same investment strategies, yields and share class options available to UK investors, but with additional share class currency hedge protection. The structure enables Rathbones to cost-effectively distribute its funds to European investors, without having to replicate the full portfolio of the master fund.

Carol Hughes, head of client services, Securities Services, HSBC Luxembourg, commented: “Our Luxembourg and UK teams are working in collaboration to service Rathbones’ funds and enable them to efficiently expand their business across borders. This mandate demonstrates our ability to support new, innovative fund structures and cross-border distribution strategies.”