Thu, Apr 24, 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   |   
Banner
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. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  4. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  5. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac