Upline Capital Management has launched Upline Patrimoine, a new mutual fund created for the Mutuelle d’Assurances des Transporteurs Unis (MATU). The fund has been set up for 99 years with an initial capital of 1 million dirhams. Each unit starts with a net asset value of 1,000 dirhams. Its financial year runs from October 1 to September 30.
Upline Capital Management, based in Casablanca Finance City, manages the fund. Banque Centrale Populaire (BCP) is the custodian, while Upline Capital Management also distributes the fund.
The fund invests in a mix of shares, bonds and cash instruments. Equity investments must be above 0% but below 90% of total assets, excluding equity UCITS and cash.
It can also invest in finance company commercial paper, treasury bills, certificates of deposit, government and government-guaranteed securities, bonds and securities issued by securitisation funds. Investments in other UCITS cannot exceed 30% of net assets.
The fund can invest up to 10% of its assets abroad in foreign currency. It is also allowed to carry out repurchase agreements (repos) and securities lending and borrowing transactions within regulatory limits.
The recommended investment period is three years. Investors can submit subscription and redemption orders on every business day before 11:30 a.m. Orders received before the deadline are processed using the same day’s net asset value. Orders received later are processed at the next valuation.
The management company can either reinvest profits or distribute them partly or in full. Any distribution must be made within six months after the end of the financial year.
Annual management fees are capped at 2% excluding tax. The prospectus also sets fees of 10,000 dirhams excluding tax for the statutory auditor, 20,000 dirhams for publication costs, a 0.01% custodian fee and a 0.025% fee payable to the Moroccan Capital Market Authority (AMMC).
Upline Capital Management is the asset management arm of Upline Group, the investment banking subsidiary of Banque Centrale Populaire. The company manages money market, bond, equity and thematic investment funds for retail and institutional clients.
The launch comes as more financial institutions create dedicated investment funds for institutional clients. The fund’s investment rules give managers flexibility to move between equities and fixed income depending on market conditions, while allowing up to 10% of assets to be invested in international markets.
