Starting from 1 March 2026, unit investment funds (UIFs) will be allowed to change their status from ‘qualified’ to ‘non-qualified’. The requirements for reclassification are outlined in the relevant Bank of Russia ordinance.
This opportunity will primarily appeal to the funds whose investment strategy initially focused on higher-risk projects, such as construction of shopping centres or warehouse facilities. However, once these buildings are commissioned, such funds may seek to adopt a more conservative strategy.
To reclassify a fund, a management company will have to, among other things, bring the trust management rules, as well as the composition and structure of the fund in line with the requirements applicable to UIFs for non-qualified investors.
By the time when the documents, including the adjusted rules, are submitted to the Bank of Russia for registration, all the units must be paid for in full and there must be no restrictions on the relevant UIF or grounds for its termination.
The status change will allow qualified investors to withdraw from a project after the completion of its risky stage, while also making it possible to attract new unit holders who can then receive returns on their investments.
Preview photo: Cagkan Sayin / Shutterstock / Fotodom
