Novia has added the Aliquot Commodity fund and Aliquot Agriculture fund to its investment range as investors seek allocation to real assets to shelter from the market turmoil.
The Dublin-listed Ucits funds offer 100% exposure to commodities and agriculture with no exposure to company stocks or stock indices, so performance is uncorrelated to stock and bond markets, offering clients diversification.
Daily traded, the funds are denominated in sterling with a 1.75% management fee and 15% performance.
They were formed to meet client demand for direct exposure to such assets within the protection of a Ucits framework.
Many commodity funds invest in company stocks, which are highly correlated to equity indices, vulnerable to corporate risk and offer limited exposure to the price moves within traded commodities, according to Castlestone.
"Investors are increasingly aware of the benefits of diversification, and Novia is helping them to broaden their investment base by adding these two funds," said Castlestone Management's founder and joint CEO Angus Murray.
"They offer direct exposure to commodity prices, enabling the individual investor to reduce risk and improve their potential returns by adding exposure to an uncorrelated asset class," he added.
Castlestone believes prices will gain 'substantially' in the years ahead as demand for resources grows, and a natural floor to prices will act to stem excessive price declines in the long term.
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