J.P. Morgan's alternatives arm Highbridge Capital Management has launched the Highbridge Diversified Commodities fund offering investors access to commodities futures in a Ucits III format.
The Sicav fund will comprise an actively managed portfolio of 25-30 of the most liquid, major commodities. It will have a long bias but will also have the ability to short commodities should the investment team see an opportunity.
The fund will invest in commodities via the futures market and meet Ucits III rules through the use of a total return swap. It has been launched in response to client demand for a pure commodities vehicle, the group says.
The fund’s management is entrusted to a team of six professionals, headed by Sassan Alizadeh and Mark Nodelman.
Jasper Berens, head of UK retail sales at JPM, says: “As the fund gives investors exposure to pure commodities through a total return swap, it means that investors will only be taking commodity risk rather than equity and commodity risk together.
“While equity sectors overall are generally more correlated to each other and influenced by economic and market trends, the performance of individual commodities tend to be dominated by their own supply and demand dynamics.
"As a result, diversifying a portfolio of equities, bonds and other alternatives with commodities may offer further diversity within a balanced portfolio.”
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