New share classes paying commission to boost Absolute fund of hedge funds

Absolute Fund Management is attempting to boost its fund of hedge funds by tapping the intermediary market with the launch of new share classes that pay commission and trail fees, and by reducing its performance fee on those new classes. For the Absolute Fund there will now be intermediary-friendly US dollar, sterling and euro classes, all offering commission of up to 3.5% and a trail fee of 0.5%. At the same time, the firm has reduced its performance fee to 10% of gains between 6% and 24% for the new shares compared to a performance fee of 15% for the fund's existing shares. The new...