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Benedicte Gravrand, Opalesque Europe:
Damien Hatfield, of Triple A Partners, mused over Australian institutional investors’ making it so hard for foreign hedge fund managers to market their funds to them.
Sydney-based Triple A Partners Australia brings together managers and investors. “Some years ago, I took a manager to meet a prominent asset consultant,” Hatfield said in his October newsletter. “The very first question even before we described the product was “do you discount fees?””
Hatfield always tutors overseas managers on this tendency that Australian investors have to demand fee cuts, telling them: “If they don't discount, then they better have a compelling net return story to tell.”
Looking back, fund raising became a very difficult task for managers post-2008, so many of them sought out Australian investors. The latter took that opportunity to ask for discounted fees. Hatfield himself, as a third party marketer, has seen his revenues becoming ‘discounted.’ He points out that when marketing in Europe and in the US, “only on rare occasions have I had the fee discount discussion. If it was agreed, it was on the understanding of a large allocation.”
A fund manager from Ramius told Hatfield that “good managers could be deterred from visiting Australia because of the discount fee expectation locally.” Ramius has inst...................... To view our full article Click here
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