both of the new products will hold around 10 funds, investing in a range of assets covering their respective asset classes
Forsyth Partners has launched a global commodity fund and a global property portfolio that are to be managed on a fund of funds basis.
The Forsyth Global Property Fund will invest in open-ended investment funds that invest in property-related securities, physical properties and derivative instruments. The portfolio will provide exposure to different geographical regions and to different types of property including commercial, industrial and residential. The fund will not make any direct investment in physical properties.
There will be 10 funds in the property portfolio. This will include the Morgan Stanley Sicav US Property, the Henderson HF European Property Fund and the Morley Investment Property fund. The main areas of investment will include UK, Europe, US and Asia.
Peter Toogood, chief investment officer at Forsyth Partners, said: "We believe that global demand for property from both the corporate and the private sector will remain strong. In particular, Asia looks set to grow where increases in personal wealth have encouraged private property ownership."
Regarding commodities, Toogood considers that although the commodity bull story is beginning to mature, demand looks as though it will continue to rise.
He said: "We see demand continuing, in particular from Asia and China, where the growth of infrastructure shows little sign of abating. Moreover the price of raw materials such as oil will continue to be supported by high demand, threats of disrupted supply and stretched production. The twin threat of possible US reflation and weak international currencies could also boost precious metals such as gold. In short, the commodity sector has a superb supply/demand dynamic and looks poised for further growth."
The Forsyth Global Commodity Fund will invest in open-ended investment funds which have as their investment objective investment in commodity-related securities, physical commodities, commodity futures and other derivative instruments. It will not make any direct investment in physical commodities.
There will be nine funds in the Global Commodity Fund. This will include the JPMF Natural Resource Fund, the Merrill Lynch World Mining Fund and the Investec GSF Global Energy Fund. The main areas will be in natural resources, gold, energy and water.
Funds will be selected through Forsyth qualitative and quantitative research. This will focus on the understanding of how a fund manager will behave under different conditions. This process examines the strength of the investment process and disciplines, the in-house research capabilities and programme for company visiting, the investment manager as an individual, size of assets under management and ownership structure.
For both funds the minimum investment is $10,000. Annual management fee is 2%. Both funds will pay initial and trail commission to qualified intermediaries. Both funds are to be domiciled in Bermuda.
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