Swiss private bank, Sarasin has joined the growing number of organizations to launch a commodity fund. The new Sarasin Commodity Fund exp...

Swiss private bank, Sarasin has joined the growing number of organizations to launch a commodity fund. The new Sarasin Commodity Fund exploits the dynamic and volatile behaviour of international commodity markets to ensure attractive returns, whilst giving portfolio diversification, according to the Basel-based private bank. It offers investors a practical instrument for actively participating in commodities markets without exposure to the usual transaction risks. The fund will invest in crude oil, petrol, natural gas, gold, copper, nickel, cotton, orange juice and sugar to give what the bank believes to be a well-diversified and stable investment vehicle. There is very low correlation between these commodities, according to Sarasin. The fund will be actively managed and re-balanced at regular intervals. Earlier this week Deutsche Bank announced the launch a commodity index-tracking fund to be listed on the US stock market. The bank said the fund will be the first commodity-index-linked fund to be listed in the US. UK-based BDO Stoy Hayward Investment Management has also launched an unregulated commodity fund of funds which will give eligible investors exposure to physical commodities, rather than commodity equities.