Swedish hedge fund provider Catella has announced the implemenation of a perpetual high water mark on its Hedgefond fund, subject to regulatory approval.
The fund has delivered an average annual return of 5.6% against average standard deviation of 2.6% since inception in 2004, the fund manager said. Local fund supermarket platform Fondmarknaden named it Hedge Fund of the Year in both 2014 and 2015.
At launch the manager applied an annually reset high water mark – which it said was not unique – but as the market has moved toward a perpetual high water mark it has decided to adjust its fee structure.
Erik Kjellgren, head of the Swedish fund management operations, said that the change was awaiting approval from the Swedish Financial Supervisory Authority (Finansinspektionen) before being implemented.
“We believe in our fund management model and we naturally care about full transparency, including in our fee structure,” Kjellgren said.
