The term ‘Newcits’ should not be used because what it is usually intended to refer to are not new products or a new category of funds – and hence could be confusing and misleading, according to a report published by the European Fund and Asset Management Association.
The 17-page report, The Evolving Investment Strategies of UCITS, states that all UCITS are subject to the same detailed rules set down in European legislation, and therefore that Newcits are just UCITS.
EFAMA's Peter De Proft
Peter De Proft, director general of Brussels-based EFAMA, says: “The Newcits label was coined by the media and should not be adopted by the industry or regulators. We do not believe that...