AREF has been working with the Investment Association (IA) on a contractual form of Onshore Professional Fund (OPF), called the Professional Investor Fund (PIF). This will sit alongside the IA’s proposed partnership and corporate vehicles and has been added in March 2020 to the IA’s UK Funds Regime Report to HM Treasury Asset Management Taskforce.
While AREF’s proposal for the PIF initially focuses on property, it could be used for wider asset classes. Like the other OPF vehicles, the PIF would be an Alternative Investment Fund (AIF), with a UK manager and depositary. The PIF would take the form of an unauthorised contractual scheme and could be closed-ended or a hybrid structure. The PIF would not be listed and would be tax transparent.
Please Note the following changes to page 7, paragraph 2 of AREF's Proposal for the PIF (amended 26/06/2020). These changes were made to further clarify the proposed PIF is specifically intended for professional investors only. Retail investors shall be prohibited.
New wording: "is limited to a similar category of investors who are permitted to invest in a Qualified Investor Scheme ACS. Direct investment in a PIF is limited to investors who invest a minimum of £1 million and are professional investors. Other investors can only access a PIF through feeder funds which satisfy the professional investor status."Previous wording: "is limited to the same category of investors who are permitted to invest in an ACS. Direct investment in a PIF is limited to investors who either invest a minimum of £1 million or are professional institutional investors. Other investors can only access a PIF through feeder funds which satisfy the professional institutional investor status."