Investec has launched its UK domiciled Enhanced Natural Resources fund which will be run using full UCITs III powers, including the option to short stocks.
The new fund has a total return objective and will combine fundamental analysis of underlying commodity securities with a bottom-up stock-picking approach.
It is daily traded and can access a universe of over 30 commodities and 800 resource stocks spanning the whole commodity spectrum, including companies involved in energy, metals and mining and agriculture. It also has flexibility to move between different commodity securities.
The term ‘enhanced’ refers to the fund’s UCITS III powers, which enable it to take both long and short positions in the portfolio. This has the potential to protect investors against downside market movements as well as to take advantage of the upside, increasing the potential for a better risk/return balance, Investec says.
Bradley George, Investec Asset Management’s head of Global Commodities and Resources, and co-portfolio manager of the Investec Enhanced Natural Resources fund comments: “The Enhanced Natural Resources fund is founded on the belief that we are in a long term secular growth cycle for commodities driven by demand from both emerging economies and the developed world.
“This fund seeks to offer our UK investors the opportunity to access an enhanced commodity solution to those already available in the market at present. The widest opportunity set, including metals, mining, energy and agriculture coupled with the ability to go short which should help to enhance our clients’ returns. In essence we are bringing some of the techniques that have made hedge funds successful to the UK retail market.”
The fund is a UK domiciled OEIC with daily dealing. It has a minimum investment of £1000 and will be available through all leading fund supermarkets, platforms and life companies. The initial charge is 4.5%, AMC is 1.5% and there is 0.5% trail commission.
The new fund complements the existing range of Investec's commodities & resources products which include the UK-domiciled Global Gold fund and Global Energy fund, and the Guernsey-domiciled Global Dynamic Resources fund, Global Gold fund, Global Energy fund and Global Commodities & Resources fund. Investec AM currently manages over $5bn in commodity-related investments.
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