Traded Policies fund bags UK distributor status

Boutique fund manager Managing Partners Limited (MPL) has secured UK distributor status for retail and institutional share classes of its Traded Policies fund.

The distributor status, appointed by HMRC, will offer UK investors the chance to invest tax-efficiently in the fund. With distributor status, offshore funds can be treated for tax purposes like their onshore counterparts in the hands of a UK investor.

Consequently, any income element within a fund is accounted for and distributed in the form of a dividend.

MPL applied for distributor status for its Traded Policies fund to meet demand from investors for traded life policies (TLPs).

Available to retail investors, the US Dollar Growth share class has returned 8.94% net of all charges over the year to 1 August 2009 and 11.5% since its launch on 15 April 2008.

"Because any growth in the value of the investment is identified as a capital gain rather than as income the UK distributor status will become even more relevant in 2010 when the new tax regulations will be put in place," says Jeremy Leach, managing director of MPL.

He says high earners can dodge income tax up to 50% on profits from their investments by choosing the fund, while returns will be taxed as capital gains and can be offset against CGT allowances.