Fri, Oct 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Axiom Fund waives management fees - a first for the alternative UCITS sector

Tuesday, April 24, 2012
Opalesque Industry Update - Axiom Fund announced a major change in the fee structure of the Axiom UCITS Alternative Investable Index Fund (“the Axiom Fund”). The Axiom Fund has waived its management fees, becoming the first fund of funds in the alternative UCITS space to charge performance fees only.

Axiom Fundis taking this groundbreaking step to better align the interests of investors in the fund and lead the way in developing a new approach to fees for the UCITS industry. The 1% management fee will be replaced with a 10% performance fee, meaning that investors will now only pay fees when the fund delivers positive performance. The performance fee is subject to a high water mark.

Launched in December 2010, the Axiom Fund is the first investable index of UCITS hedge funds. It offers weekly liquidity and aims to replicate the performance of the UCITS Alternative Blue Chip Index (“the UAI Blue Chip Index”) provided by Alix Capital. The UAI Blue Chip Index is a rule based benchmark comprising the 50 largest UCITS hedge funds and is rebalanced quarterly.

Alessandro Mauceri, Chairman of the Board of the Axiom Fund, says: “The Axiom Fund addresses clients’ ongoing concerns regarding traditional funds of hedge funds, notably their opacity, lack of liquidity, the operational risk linked to such structures and the multiple layers of fees.

“In 2009, we were among the pioneers in entering the UCITS onshore hedge funds universe, enabling us to respond to the main concerns of investors. Today we are solving the last issue by waiving our management commission and charging only incentive fees. This ensures that our interests are truly aligned with those of our clients.

“Investors remain keen to allocate to alternatives in the search of alpha, but are challenging the approach of traditional investment vehicles. As the UCITS sector continues to grow we believe that inflows will follow the best UCITs products available. The Axiom fund gives investors easy access to these top tier funds in a highly transparent, cost efficient way.”

Louis Zanolin, CEO of Alix Capital, says: “Given their high liquidity and strong regulatory oversight, UCITS hedge funds are particularly well suited for index based products. The added benefit of real alignment of interests between investors and managers on this fund creates a compelling investment proposition for investors.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some