Schroders is in dispute with its own hedge fund over the fees it is being charged by the fund for holding millions of pounds in cash, The Independent reports.
The fund manager is negotiating with New Finance Capital (NFC), its fund of funds, over fees it is paying on cash being held in what is called a "side-pocket". Schroders has asked NFC to liquidate certain investments made through its funds because of poor market conditions, according to the paper. But only 90% of the money Schroders invested was returned because NFC, which invests in the credit and commodity markets among other asset classes, has retained a 10% balance in the side-pocket. NFC has held on to the money because it did not want to sell assets at distressed prices in today's m...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
