Sagitta aims for increased appeal with hedge fund changes

Sagitta Wealth Managementhas introduced changes to the Sagitta Rothschild Global Return Fund in an attempt to improve its liquidity and accessibility.

The global fund of hedge funds will now offer monthly withdrawals, to make it a more liquid offering, and will reduce the minimum initial investment to make the fund more accessible, measures designed to appeal to investors and master funds.

The monthly redemptions will mean investors can notify Sagitta up to the day before months end and receive payment within four weeks.

This change will make it more suitable for master fund platforms, who often find it difficult to add hedge funds to their menu because of liquidity issues.

“Australian investors and their advisers have shown increasing interest in hedge funds in recent times, particularly with the volatile markets,” Sagitta head of alternative investments Richard Keary says.

“The question of liquidity in alternative investments has been of concern to them. Investors, generally, are not comfortable having to wait up to three months to receive their funds after requesting a withdrawal.”

The minimum investment amount for the Global Return Fund has been reduced from $100,000 to $50,000 to increase investor access.

Sagitta also plans to release its domestic fund of hedge funds, the Sagitta Rothschild Total Return Fund, to the retail market by the end of the year.

The Total Return Fund, which was established in September 2000, was previously only available to ‘sophisticated’ and institutional investors.