Alternative Road Investment Advisers, Belvedere Asset Management and LJM Funds Management will advise new alternative mutual funds through Two Roads Shared Trust, a shared mutual fund trust open to new advisers effective 1 November 2012.
Two Roads is designed to help hedge fund managers and other alternative investment managers cost-effectively launch mutual funds by leveraging experienced hedge fund and mutual fund service providers, including Gemini Fund Services and Dechert, legal counsel to the trust.
"As more advisers continue to recognise the significant role that alternative strategies can play in diversified portfolios, we are pleased to provide them with a cost-effective investment vehicle to deliver these strategies to retail and institutional investors," says Andrew Rogers, chief executive of Gemini Fund Services. "By launching a mutual fund through Two Roads, advisors can access a full suite of support and resources unique to today's mutual fund landscape."
Launching mutual funds through Two Roads provides advisers with operational efficiencies and cost savings that they would not be able to obtain by themselves. Advisers that use the Two Roads' platform are also provided with distribution support, including introductions to broker/dealers and assistance with their marketing and distribution plans.
"Most hedge fund managers are not aware that shared trusts like Two Roads have greatly lowered the barriers of entry to launching a mutual fund," says Aisha Hunt, a San Francisco-based partner in Dechert's financial services practice. "Lower marketplace barriers, combined with an unprecedented demand for alternative mutual funds, has created a historical opportunity for hedge fund managers to raise assets through mutual funds."