Fund Management

Innovative New Commodity Fund Launched

Stephen Harris 16 January 2006

Innovative New Commodity Fund Launched

UK-based BDO Stoy Hayward Investment Management is launching an unregulated commodity fund of funds which will give eligible investors expos...

UK-based BDO Stoy Hayward Investment Management is launching an unregulated commodity fund of funds which will give eligible investors exposure to physical commodities, rather than commodity equities. The Guernsey-based TRF Commodity Plus Fund will be run by Fitzwilliam Asset Management (Guernsey) and will have an element of active management. Funds invested in will directly hold metals, agricultural and energy commodities and other complementary assets such as shipping. This is an unusual and innovative structure as most commodity funds hold commodity-based equities. Physical commodities tend to be difficult for private investors to access other than through more risky investment activities such as futures trading through a CTA or through individual spread betting. Jeremy Charlesworth, alternative investment strategy director at BDO said: “Commodities tend to have little or no correlation to equities and bonds. Our asset allocation research has confirmed that by having an exposure to commodities, portfolios can have improved performance with reduced risk. “Commodities in general have been in a bear market for the last 20 years - typical of the secular nature of the asset class. As a result, commodities have generally been off the radar for many investors and there are very few ‘genuine’ commodity funds available.”

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