Butterfield Asset Management (BAM) has appointed International Asset Management (IAM) as adviser for the Butterfield Select Fund ' Alternative Class.
The Alternative Investments Class ' which aims to provide diversification and reduce the risk level of a traditional portfolio ' is one of three classes of the Butterfield Select Fund.
It was previously managed in-house by three individuals, utilising information sources and research from institutions such as Hedgeworld.com and other contacts within the hedge fund industry. The other classes ' equity and fixed income ' will continue to be managed by the BAM team.
According to IAM, there remains a lack of aggregate information on alternative investment managers, which has made it difficult to select the optimal structure and diversification of managers.
'With the growth witnessed during the past few years, in both assets and managers, the task of selecting the most appropriate managers who can produce stable and consistent returns while controlling risk, has grown more difficult,' said an IAM spokesman.
'A greater amount of research is required into the background and abilities of hedge fund managers, along with a strong knowledge as to the risk controls implemented from both the investment strategy and business side of the specific hedge fund. BAM, being a more traditional investment management group, believed it required a more specialised adviser in order for the product to produce stable and consistent returns and to develop and grow.'
The Alternative Class is one of three classes in the Butterfield Select Fund that offers equity, fixed income and alternative asset categories. The equity and fixed income classes charge a management fee of 0.875%, while the alternative class has a management fee of 1.25%.
The Butterfield Funds are listed on the Bermuda Stock Exchange and the Cayman Islands Stock Exchange. Initial investment for the alternative class is $10,000.
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