Absolute Capital poised for retail push

Boutiquehedge fund manager Absolute Capital has entered into discussions with a series of financial planning dealer groups in an attempt to forge distribution channels ahead of the launch of its alternative investment products to retail investors.

The specialist fund-of-hedge-fund manager, which is launching its flagship Absolute Return Fund, along with its Equity Long/Short and Yield funds to the retail market in March, has been sounding out the likes of PIS, Count Wealth and the MLC dealer groups as potential distribution partners.

Absolute Capital is also attempting to have the funds included on a series of retail focussed master trust and wrap accounts in an effort to raise $50 million from retail investors by the end of the year.

The group has added three new business development managers and one new investor relations manager to work alongside its existing head of market implementation, Joshua Goben, to help realise its ambitions with retail investors.

Absolute Capital’s push into the retail sector will also be aided by its teaming up with European based alternative investment group RMF.

The Swiss based group has made a significant capital injection into Absolute Capital and pledged to supply the manager with investment research to support its portfolio construction and product development initiatives.

The three funds will be available to retail investors for a minimum initial contribution of $2000 and minimum ongoing contributions of $1000. Advisers will be entitled to a four per cent up front commission from sales of the funds and a trailing commission of 40 basis points.