Dubai’s Centaur launches natural resources bond tracker fund

Added 21st June 2016

Centaur Asset Management has launched the Centaur Natural Resources Bond Tracker Fund, an open-ended mutual fund, domiciled in Bermuda, targeted at income seeking investors.

Dubai’s Centaur launches natural resources bond tracker fund

Investment in the fund is available to anyone over the age of 18, who wishes to purchase shares with a value of $20,000/£20,000 or above.

A three-year term currently targets 7% dividend per annum, which increases to 10% per annum under a five-year term.

The fund allows investors to gain exposure to the Centaur Natural Resources Bonds which are issued by Centaur Group Finance.

Coal mining projects

The underlying debt securities are listed on the Bermuda Stock Exchange, which assist in financing Centaur Group’s mining related projects. The bonds provide capital principally for coal mining projects in South Africa – one of the top five coal exporting countries in the world.

It will offer investors a monthly dividend, whilst ensuring that they avoid wider market volatility, and have the flexibility to choose a term to suit their individual needs.

No capital growth

Notably, the fund will not look to achieve capital growth, as it aims to receive a coupon payment on its underlying investments of bonds, which will be used to pay a dividend to the relevant investor/ shareholder in the fund.

Franklin Connellan, director of business development of Centaur AM’s Dubai headquarters, said: “This is a landmark new fund, which will play a key role in our wider business. We’ve developed a genuinely strong product, which allows investors to access the natural resources market, without the risk of any equity exposure.

“We anticipate this will prove to be popular amongst our target investor base, and look forward to the fund’s development in the coming months and years.”

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About Author

Kirsten Hastings

Senior Reporter

Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

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