Published by Money Management – 15th Jan 2019
The Allan Gray Australia Equity Fund (Class B) has now been added to Macquarie Wrap, with the Allan Gray Australia Equity Fund (Class A) already available on the platform.
According to the company, the two funds were identical, other than their fee structure, with class A charging a base fee plus performance fee while class B charging a zero base fee and a performance fee.
The company’s chief operating officer, JD de Lange, said that a performance-based fee provided greater alignment between risk and reward.
“The addition of our class B Fund to the platform means advisers who use Macquarie Wrap can access the same actively managed, contrarian fund but only pay management fees when we outperform,” he added.
“A client will only pay the performance fee where the fund’s outperformance exceeds the high water mark. This is the highest level of outperformance compared to the benchmark since the fund was launched.”
