This part of a number of changes Insight is making to its Absolute Insight range with the most far-reaching being the closure of all the share classes on its credit fund, with the exception of the institutional ‘S’ class.
The new share classes coming in on Alex Veroude’s Absolute Insight Credit Fund will see the performance fee double from 10% to 20% “in line with the competition”. When pressed on this, a spokesperson for the company confirmed that the change was essentially being made “because of what our competitors are doing” and that “it was a reflection of the expertise needed”.
She went on to say the management fee (85bps institutional) is not changing and that the high watermarks are still in place so the performance fee is based on more than simply beating a benchmark.
The change will take effect from 30 September and any investments made before this will maintain the 10% performance fee. The negatives for intermediaries who hold the fund is they will have to run two versions of the same fund side-by-side as well as now being penalised by the extra costs if they have been supporters of the fund since outset.
Elsewhere, Insight has already launched a yen hedged share class, on 15 July, for Dale Thomas and Max Wahl’s Absolute Insight Currency Fund available to professional investors.
On 18 August, the Absolute Insight Emerging Market Debt Fund, run by Colm McDonagh, will be able to invest up to 10% of the net asset value of the fund outside emerging markets.
