Thursday, 25 August 2016
Last updated 21 hours ago
Feb 12 2013 | 1:46pm ET
Clive Capital will cut its fees by 20% after two down years that have seen its assets under management fall by nearly half.
The London-based commodities hedge fund said it would reduce fees for Class B shareholders to the industry-standard 2% for management and 20% for performance. The US$1.95 billion firm currently charges 2.5% and 25%, Bloomberg News reports.
The changes will take effect in April and will not affect Clive's operations, it said in a letter to investors Friday.
"As a result of two challenging years for the fund, we have decided to lower our Class B fees," Clive wrote. "We are positive about the opportunities in the commodity markets in 2013 and optimistic on performance going forward."
Clive lost 9.9% in 2011 and 8.8% last year. It had posted double-digit returns in the three prior years.