UK fund manager Rathbone Unit Trust Management plans to launch four funds domiciled in Luxembourg, allowing European investors access to its products for the first time.

The firm, which manages over £3bn worth of client assets, says the new fund quartet will operate under a master-feeder structure, a system commonly used by hedge funds to pool investment capital.

Products include an ethical bond fund and three multi asset vehicles, each sharing the same investment processes and objectives of UK-based parent funds.

They are set to launch in May, providing regulators give the go ahead, a month before the UK public votes on whether Britain should remain in the European Union.

Some industry experts have warned that medium-sized and boutique UK-based fund groups without an offshore product range would face costly regulatory barriers to distributing their products more widely if Britain votes to leave.

In a note this month, investment bank UBS said smaller UK asset managers are likely to be hit hardest by a Brexit as they are more likely to rely on 'passporting' as a way to distribute UK-domiciled funds into continental Europe, or vice versa.

Rathbone is targeting retail investors via financial advisers, insurance firms and UK and European pension funds.

“The move is in line with our long-term strategy of broadening our distribution through intermediary channels in the UK and now across Europe," said Mike Webb, Rathbone's chief executive.

"Based on demand for our investment services to date, we believe this new market to have considerable growth potential for the business.”