Hedge Fund Mandate
Objective
The client wanted access to the very best of the best Hedge Funds. They wanted an ability to select from the top performing global hedge funds, on a rolling basis without incurring costly switching fees, giving them the freedom and opportunity to swap in and out of hedge funds, as conditions, global themes or viewpoints changed.
Solution
Working together with the specialist Zurich Hedge Fund team, we were able to provide a hedge fund mandate solution, that enabled the investor to switch in and out of their fund holdings on a monthly basis, for a fixed upfront fee. Minimum allocation applied (US$25million) and the cost for the solution was 1.5% of AUM, per annum. Without this solution, the client would have been otherwise heavily penalised for every withdrawal from each fund and missed out on having access to best of the very best “soft closed” Hedge Funds.
Outcome
- Accessed best performing funds, in every asset class and strategy, globally
- Funds were continuously screened and monitored on a monthly basis
- Client was able to swap in and out of funds as market shifts and views warranted
- Significant cost reduction and removal of early redemption penalties