Targeting 8% to 12% per annum, with 12% volatility, the Jubilee Momentum Fund is a limited-leverage fund regulated by the Maltese Financial Services Authority.
The fund’s disciplined investment strategy follows global price trends and aims to produce positive absolute returns across both rising and falling markets.
Up to 90% of the value of the fund is held in what are described as core assets – exchange-traded funds – that are currently positioned to cope with higher future inflation rates. The balance is used to take short or long positions on 20 underlying assets via exchange-listed futures.
It is these 20 momentum assets that Jeff Seifert, Jubilee’s chief investment officer, argues will provide the portfolio with the potential to outperform long-only and single asset class funds.
The momentum assets cover a number of stock market indices (the FTSE 100 and Nikkei 225 among others), commodities (sugar, copper and aluminium for example) and fixed income assets, including UK gilts.
The amount of leverage is limited to that allowed by Maltese ‘experienced investor’ fund regulations.
At launch the combination of these core and momentum assets will give 180% leveraged exposure.
Seifert explains that Malta-regulated funds allow him to include a diversified set of commodity futures alongside equity, interest rate, and credit exposures. These are not currently available within a Ucits structure, he said.
The fund will be listed on the Malta stock exchange and has a minimum investment of £25,000. Its first closing date is 1 March and the total expense ratio is expected to be 0.5%.
