Way launches three funds with fees based on performance

Way Fund Managers has announced the launch of three funds which will link charges to the performance of the funds.

The Freestyle Growth fund launches this month, followed by the Way Absolute Return and Asian Spice funds.

The Freestyle Growth fund, which will be managed Way’s in-house investment team headed by Trevor Chanter, carries a permanent fund management charge of zero, until it achieves a return of at least 10% per year.

Using a tiered performance fee system, if the fund returns between 10-20% the fee will be 10% of the return, rising to a fee of 15% on the next 10% of performance, with the top tier being a 25% fee on all returns above 30% per year. (article continues below)

However, the retail share class of the fund will carry an added 0.5% annual charge as trail commission.

In a release, Way says the Absolute Return and Asian Spice funds will also align their interests with those of the shareholders in the fund.