The Arbitrage Fund just got a bit cheaper for individuals and institutions alike, and it may get even cheaper. Water Island Capital, which advises Arbitrage, confirmed that it lowered both the fund's institutional and retail share classes by 19 basis points each on October 1, to 144 bps and 169 bps, respectively. Watch for the Manhattan-based firm to cut the fund's fees again soon.

According to a statement this fall from Water, the fund's "next management fee breakpoint" was at $500 million in assets. At the time, Arbitrage boasted $442 million in assets; by market close on November 16, according to Morningstar, the fund had $564.9 million. That increase should trigger both lower administrative fees and an advisory fee drop to 100 bps for "average daily net assets in excess of $500 million." 

Edited by: Neil Anderson, Managing Editor


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