Alternative Investment Strategies, the first fund of hedge funds to be listed on the London Stock Exchange, has announced a change to its performance fee criteria by introducing a Libor GB
Alternative Investment Strategies, the first fund of hedge funds to be listed on the London Stock Exchange, has announced a change to its performance fee criteria by introducing a Libor GBP 1-month hurdle rate as of November. Previously the performance fee had no hurdle rate and was charged when the fund’s net asset value was in positive territory, subject to a high-water mark.
The new rate means that performance fees of 10 per cent per annum are charged on NAV gains over the Libor GBP 1-month rate, subject to the best practice of charging performance fees only when the NAV exceeds the hurdle rate and is higher than all previous levels.
International Asset Management, the London and New York-based fund of hedge fund manager, is the investment manager of AIS and provides the marketing support. Says the firm’s head of investments Alan Djanogly: ‘We pride ourselves on ensuring that AIS remains an accessible and competitive fund for investors.
‘Over the past 10 years we have managed AIS in an active and opportunity-driven style, and we see this change as a further indication of the strength of our commitment to always ensure that AIS investors are given the best possible levels of access to this area.’
AIS has annualised returns of 10.37 per cent between the launch of the fund in December 1996 and the end of May this year, and has no negative years. Over the same period, the MSCI World Index, hedged into sterling, has returned an average of 8.30 per cent, while Libor GBP 1-month has averaged 5.35 per cent.
Founded in 1989, International Asset Management is one of the oldest specialist hedge fund portfolio managers in Europe and specialises in creating to tailor-made portfolios of hedge funds for institutional and individual clients. Following the firm’s acquisition in February 2006 by ABN Amro Asset Management, assets under management for the combined business amounted to some USD5.2bn at the end of last year.