WESTPORT, Conn. - John W. Henry & Co. Inc., a manager of $1.5 billion in futures assets, unveiled five institutional managed futures funds carrying management fees lower than its retail-oriented managed futures accounts.
Two of the funds will be non-leveraged and offer management fees as low as 125 basis points of assets. John Henry's Institutional Non-leveraged Financial fund will invest using long and short positions in financial futures under two possible management fee structures. An investor can pay a fee of 25% of profits above the U.S. Treasury bill rate, or 125 basis points of assets, said John W. Henry, chairman.
The other non-leveraged fund in its institutional offerings will invest in commodity futures under the 25% of profits structure, or a flat 150 basis points, he said.
Three other institutional funds run by John Henry will use leverage of varying amounts, but not to exceed 1.5 times assets, he said. One will invest in a diversified portfolio of futures contracts and will charge a fee of 100 basis points plus 25% of profits over T-bills.
The firm's two other funds are enhanced index stock and bond funds. Each will take long positions in the cash market, with long and short futures strategies managed around those positions.
It is likely the cash portion of the index funds will be managed by an index fund subadviser.
Mr. Henry said the funds' strategies are not new, but the fee structures are. Retail investors often can pay fees in managed futures of 400 basis points. Brokerage commissions for all funds will be capped at 50 basis points.
