Four Capital Partners is seeking to build assets for its new Multi-Strategy fund, managed by former Insight head of multi-asset Mike Pinggera, by dropping its management charge to 0.5%.
The fund, which has flexibility across asset classes and uses a core and satellite strategy, will have a 0.5% share class available for the first £100 million it gathers, when it launches in January.
After this point, the management charge will go up to 0.75%. Pinggera (pictured) will seek to cap the fund’s total expense ratio at 1.25%.
Four Capital founding partner Derrick Dunne said: ‘We are interested in attracting key founder investors and fees are important to people these days, so we decided to put in a specific share class.’
The fund seeks to provide diversified growth with some downside protection through the use of derivatives. It will have a core momentum global equity sub-portfolio, which can allocate up to 60% to equities across eight indices or regions and is designed to provide the majority of direction risk to the fund. Surrounding the core, Pinggera and co-manager Paul Zoltowski, formerly of Credit Suisse, will invest in four low beta satellite portfolios, which include emerging market equity versus developed market, global infrastructure, high yield and active alpha.
Since April 2006 the simulated model portfolio, which replicates the approach of the fund, has posted an annualised return of 8.8%.
Four Capital is not the only fund group to drop charges as part of a drive to build assets. Last month, Guinness Asset Management opted to drop the annual management charge on its Global Income fund to 0.25%, recognising the realities of more competitive pricing post-RDR.