Side pockets
Side pockets is regulation put in place by the FCA aimed at 'protecting investors in authorised funds following the Russian invasion of Ukraine'. This now means that fund managers can create side pockets and separate suspended assets from non-suspended assets, leaving the non-suspended assets in a fund open and available to be valued and traded as normal.
About side pockets
The creation of a side pocket allows fund managers to continue managing the fund in keeping with its existing investment objective and policy. Customers will benefit from the ongoing performance of the fund's assets that are not suspended, as normal, while still keeping an interest in the suspended assets through the creation of a new side pocket.
Side pockets therefore could allow*:
- new investors to enter the fund without sharing in the exposure to the affected investments
- existing investors to sell the units which relate to assets that are not affected investments
- some funds to end their current suspension of dealing (it is worth noting that the value of the fund, when it reopens, is likely to be less than when it was first suspended due to the assets being moved out of the reopened fund).
Frequently asked questions
For more information, you can refer to the FCA paper here: PS22/8: Protecting investors in authorised funds following the Russian invasion of Ukraine (fca.org.uk).
Related content
Fund updates
Here you will find updates and information on corporate actions for our range of mutual funds.
Find an investment
Use our Investment Finder to search for funds and exchange-traded investments for your clients.