The ZFC achieves this alignment through a Fund of Funds – Multi Manager structure where Fund Managers are incentivised to optimise their level of Funds Under Management to seek to ensure they perform at a level which delivers outperformance rather than under a traditional fee model which can encourage Fund Managers to grow their funds based on management fees being a profit centre rather than a reflection of costs and administration.
The ZFC seeks to work with Fund Managers who wish to comply with this greater alignment –
- Zero Management Fee or a low Management Fee which is rebated out of the performance fee.
- With a traditional management fee structure who are willing to oversee a mandate on behalf of The ZFC which complies with ZFC principles.
- Managers with proven track records who are Wealth Managers or High Net Worth’s not employing a traditional Managed Fund structure and willing to oversee a mandate in compliance with The ZFC’s principles.