Stockholm (HedgeNordic) – Swedish asset manager Atlant Fonder AB decided to merge its existing fund-of-funds in an attempt to streamline its fund range, enhance management efficiency, and reduce administrative costs.
Atlant Multi-Strategy Internal, a market-neutral fund-of-funds investing in Atlant Fonder’s own hedge funds, and Atlant Multi-Strategy External, a similar vehicle investing in external hedge funds, will merge to form a new fund-of-funds called Atlant Multi-Strategy. The soon-to-be launched fund, set to come to life on December 1st, will be allocating more than 50% of capital to Atlant’s own hedge funds.
Fund mergers in which the assets of one fund are rolled into another are not uncommon. Such mergers are normally beneficial for both fund house and investors. First, these mergers help fund managers to achieve economies of scale by avoiding duplication. Second, investors could enjoy a lower expense ratio due to the larger asset base.
Atlant Multi-Strategy External had SEK 17.1 million in assets under management at the end of September, while the internal fund-of-funds managed SEK 21.1 million.