Melville Rodrigues, architect of the Reserved Investor Fund (“RIF”), is head of real estate advisory at Apex Group and co-chair of the Association of Real Estate Funds (“AREF”) Public Policy Committee. He has pioneered the development of the RIF, a new UK fund structure designed to facilitate investment in particular housing and other real estate assets. In this Q&A, Melville discusses the significance of the RIF, its key design features, and his vision for its future.
You’re described as the ‘progenitor of the RIF’. What is the RIF, and why is it important?
The RIF is a new fund structure designed to unlock billions for UK essential housing and other assets. It is structured as a contractual scheme serviced by a UK AIFM and depositary, flexible on redemptions, effectively tax-transparent, and a purchaser (of RIF units) pays no stamp taxes. The RIF is particularly attractive for real estate strategies in the UK and elsewhere. Eligible investors are pension schemes and other professional investors, as well as (with a £1 million commitment) HNWIs.
What are the RIF’s main design features?
As then a City of London law firm partner, I developed the RIF to plug a gap in the UK fund offering and be attractive in terms of speed to launch and a competitive total expense ratio (“TER”). Too many UK real estate funds have been forced offshore and, in some cases, operate via expensive master-feeders. We in the UK need an onshore fund structure in which a range of investors - such as UK tax exempts, UK taxpayers, and international investors - can benefit from the fund. RIF investors are protected with the UK AIFM and depositary, who are regulated by the FCA.
Who has collaborated with you on this campaign?
A range of industry associations (including ABI, AIMA, AREF, BPF, The Investment Association, INREV, and the IPF), as well as fund managers, institutional investors, tax advisers, law firms, and other professionals. I am most grateful for their support.
In addition, I am humbled by - and also most grateful for - the constructive engagement with UK government and regulatory officials.
You’ve worked tirelessly campaigning for the RIF. What is your vision for the RIF?
I am delighted (and relieved) that a seven-year-plus campaign has resulted in the RIF being enshrined in legislation and that - from March 19, 2025 - UK fund managers can launch RIFs. But my goals for the RIF go beyond statute book status.
I want RIF take-up, and as a result, for important stakeholders to benefit: pension scheme savers receiving greater returns (on account of the RIF’s TERs being competitive compared with alternative fund structures), government gaining more jobs in the UK, and positive outcomes for society and future generations. An outcome like “spades in the ground,” resulting in social and affordable housing, the regeneration of our town centres, and the acceleration of sustainability goals. My dream scenario is for RIFs that embrace an investment label under the UK’s Sustainability Disclosure Requirements (“SDR”)!
