Fee-buster Equitile appoints HSBC

HSBC Securities Services (HSS) has been appointed as custodian and fund services provider by investment management firm, Equitile. Working with HSBC, Equitile is set to launch the first Authorised Contractual Scheme (ACS), a UK-based tax transparent master fund, with a UK feeder fund.

The ACS was introduced by the UK Treasury in the 2013 Finance Act to help the UK better compete as a fund domicile. HSBC says it already supports one of the market’s largest and most complex ACS structures, having recently brought to market a fully integrated and automated approach for administering ACS structures. This comprises custody, depositary, fund administration, transfer agency and shareholder services.

HSS says the ACS master feeder structure will enable Equitile to offer investors an efficient investment structure – enhancing investment returns without creating additional complexity and cost. In addition to providing full support for Equitile’s ACS, HSBC will provide FX hedging services for Equitile’s currency exposures.

Founded in 2015 by a senior team of investment management professionals, Equitile is pledged to introduce a disruptive performance-linked fee model. It says its first and flagship fund will have a capacity to manage up to $5 billion with the target to reach this within five years. It says the Equitile Resilient Growth Fund, which will be the first fund pooled into the ACS structure, harnesses a new approach to investing that draws on the lessons learned from the global financial crisis.