7IM launches fund with fees to match performance

Seven Investment Management (7IM ) has launched an unconstrained fund with a charging structure that is discounted when performance is down.

The internally managed CF 7IM Unconstrained fund was soft-launched last week into the IMA ‘Unclassified' sector and will be co-managed by Alex Scott and other members of the 7IM team.

Scott said performance is reviewed at the end of each quarter, "If we are level or up on the last 12 months at each quarter end, then the fee stays the same, but if we are down then we move to a discount performance fee, which is 25 basis points lower," he said. "It is about making sure we share the pain."

The fund was seeded by a number of 7IM staff and clients and aims to deliver inflation plus 2% on a three-year rolling basis. It can invest across asset classes as well as in shares, debt, active and passive funds.

"We felt that some clients could take a more flexible approach, taking potentially quite a lot of risk when risk is rewarded," said Scott.