The fund aims to provide capital appreciation through investing in commodities-related equities, with a focus on large-caps, and will operate a core and satellite approach.
The core, constituting between 30% and 70% of the portfolio, is comprised of a basket of large cap stocks, while the satellite layer constitutes a less liquid collection of catalyst-rich stocks which are “expected to produce outsized returns relative to their individual risks”, according to Vam. An additional defensive layer will be formed through the use of cash and inverse ETFs.
The fund has a minimum initial investment of $10,000 and an annual management charge of 2.25% for retail investors, is Ucits III compliant and is a sub fund of Vam Funds (Lux) Sicav.
“Commodities provide an excellent way to gain exposure to the world’s fastest growing economies. There has been a huge surge in demand for commodities in emerging market countries such as China and India as they develop infrastructure and real estate,” commented Michael Hunt, managing director of Vam Marketing.
Fund manager Webster, an investment manager at FF&P Asset management, will focus on themes such as increased consumption in the food, power, housing and automobile sectors, accordingly investing in the likes of grains, water and related technologies, coal and natural gas, and copper-based metals.
