NEW YORK (HedgeWorld.com)–Deutsche Bank has finalized its closed-end fund offering with Sept. 3 as the tentative offering date for the DB Hedge Strategies Fund.
According to the Securities and Exchange Commission filing, the Deutsche offering, which is registered under the 1940 and 1933 securities acts will total US$150 million and will be distributed by Scudder Distributors, Chicago.
The DB Hedge Strategies Fund has gone through a number of regulatory filings and changes. One of the first changes was the fund’s name from DB Absolute Return Fund to DB Hedge Strategies Fund in a January SEC filing. This latest filing also details some other changes such as dropping the original incentive fee, which ranged from 10% to 25% of the fund’s net profits.
Also, the range spread for the number of underlying funds in the portfolio was expanded to 15 to 40 funds from 25 to 40 underlying funds in the firm’s original filing last October. The investment limit was raised to dictate that no more than 10% of the fund’s assets might be in any one fund, while initially the limitation was 7% with no less than 1% of the fund’s assets in a single fund.
What hasn’t changed is the overall investment strategy. An absolute return strategy, DB Investment Management will oversee a number of funds in four core strategies: relative value; event-driven; long/short equity; and global macro. Ray Nolte, managing director and global head of funds of funds for DB Absolute Return Strategies, will oversee the fund on a day-to-day basis.
The minimum investment for the fund remains the same at US$50,000, which is substantially lower than many of the earlier registered funds that required US$250,000 or US$150,000 of investors. The investment management fee is 1.95% and there is an administrative fee of 0.5% and a maximum sales charge of 3.5%.
Service providers, according to the SEC filing are: Dechert as legal counsel; Scudder Distributors, distribution agent; PFPC as sub-administrator, while DB Investment Management is the named administrator; and PricewaterhouseCoopers LLP, auditor.