You are here: cherry > Press releases for August 2010 > New era in fund management heralded with launch of triumvirate of funds*

02 August 2010

New era in fund management heralded with launch of triumvirate of funds* – designed to benefit investors by linking charges to PERFORMANCE. Win-win for investors – Freestyle Growth Fund boasts radical charging structure – no performance, no fund manager charge. THREE new investment funds are launched by WAY Fund Managers this month. The funds promise both a radical departure from traditional fund management charging structures and an opportunity to properly reward investors for market leading performance – and reduce losses if the funds fail to deliver. First in the August 2010 roll out of new funds is the Freestyle Growth Fund, which is launched with a permanent zero fund manager’s charge, along with a zero performance fee until the fund achieves at least 10% each year (see fig 1 below for charging breakdown). Hard on the heels of the WAY Freestyle Growth Fund, the WAY Absolute Return Fund and WAY Asian Spice fund are also designed to firmly align the WAY Group’s interests with those of shareholders in the fund. Freestyle is to be managed by the WAY in-house investment team, led by Trevor Chanter – with the considerable intellectual input of six members of the WAY Star Chamber (see attached PDF for further details). A ‘live’ model portfolio run along the lines intended for Freestyle has, over recent months, returned positive numbers each month (Source: WAY Investment Managers Limited July 2010). The charging structure for the Freestyle Growth Fund – designed in part to reflect investor unease at fund management levied regardless of whether the fund has performed well or not, carries a tiered performance fee commencing at 10% of returns between 10% and 20%. This means that a 20% gross performance will incur an effective fund manager’s charge upon the fund of only 1% per annum. A fee of 15% will be taken on the next 10% tier of performance, with a 25% fee applicable for returns above 30% per annum. These figures apply to the institutional class where there is no trail commission payable to financial advisers. The retail class however carries an additional charge of 0.5% per annum which is paid out to servicing independent financial advisers as trail commission.... For further information please download document below

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