WAY Absolute Return Portfolio Fund

A new fund delivering risk-adjusted returns...

The aim of the WAY Absolute Return fund is to provide a positive return for investors whatever the market conditions over any 12 month period...

The unpredictable and volatile returns from equities and property lead many investors to seek investment opportunities which offer both the possibility and the probability of more stable risk-adjusted returns. And contrary to common perception, well diversified and selected portfolios of hedge funds can also demonstrate risk/reward attributes amongst the most attractive of any of the major asset classes. The new WAY Absolute Return Portfolio Fund, managed by Roderick Collins, a founding member of Hasley Investment Management, takes full advantage of the accepted maturity which now exists within the hedge fund and absolute return sector.

WAY Absolute Return Fund - Roderick Collins (Picture left: Roderick Collins, Investment Manager)
The WAY Absolute Return Portfolio Fund invests across a variety of hedge fund related investments, including investment trusts of hedge funds, quoted hedge funds and distributor status hedge funds, as well having a smaller exposure to UCITS III absolute return funds and other vehicles offering non-equity correlated returns, such as Life Settlements.

The Fund is designed to take a medium-risk approach and is ideal for several purposes. When used as a supplement to a traditional cash/equities/bonds/property portfolio it is designed to act as a diversifying performance stabiliser. However, as a stand-alone investment it offers a less volatile and more robust approach to generating medium to long-term growth.

This approach to investment has now become much more widely accepted by private and professional investors, as well as by the regulator. The range of strategies to be found within the underlying investments were initially developed by institutional investors who grew tired of the volatility within equities - most specifically by the endowment funds of US universities where huge intellectual effort was expended in developing techniques to harness the returns available from equity investment but without the
constant threat of downside risk.

'No win, low fee' approach to delivering performance to investors

An innovative charging structure sees the Fund Manager (WAY) take 0.5% annual management charge and a performance fee which only kicks in once the Fund has achieved 5% growth in that year. This fee is applied on a tiered structure whereby performance up to 10% only incurs a 1% fee (inclusive of the AMC), thereby delivering a highly cost effective level of net returns to shareholders. Quite naturally, given this light touch on more modest performance levels, the performance fee then increases - but only once shareholders are benefitting from competitive returns. The retail share class
incorporates an additional 0.5% annual charge which is then paid out to advisers as trail commission.

Fund objectives

To achieve capital appreciation in the form of a positive absolute return for investors in all market conditions on a 12 months basis. The Fund will focus on investment in a selection of closed ended
investment funds which themselves seek to deliver absolute returns using a variety of suitable strategies.

References:
1. Data & Statistics - Financial Express
2. Others: Lipper; WAY Fund Managers Limited

Associated Links:

1 Launch version WAY Absolute Return Portfolio: Fund Factsheet

2 Latest WAY Absolute Return Portfolio: Fund Factsheet

3 Details of WAY Client-centred: Performance Fees

4 WAY Absolute Return Portfolio Fund: Plan Documents

5 Press Release: three new Investment Funds launched

6 Press Release: new WAY Absolute Return Fund launched

Please Remember:
The price of shares and the income from them can go down as well as up as a result of changes in the value of the underlying investments and currency movements. An investor may not get back the amount originally invested. Past performance is not necessarily a guide to future returns.