Schroders Launches 'High-Return' Closed-Ended Commodities Fund
Wednesday, April 27, 2011
Schroders has announced it is to launch a new investment trust,
structured as a Guernsey-domiciled closed-ended investment company, which will
invest in a range of commodities strategies.
The Schroder Opus Commodity Fund will be managed by Schroders NewFinance Capital,
Schroders’ absolute return multi-manager firm. In addition to the investment
through a range of active managers, the fund will also comprise a proprietary
commodities futures portfolio managed by Schroders NewFinance Capital.
According to the company, the fund is aimed at outperforming the DJ-UBS Commodity
Total Return Index by 6 to 9% per annum (net of fees) over a cycle, with 100%
exposure to the index and a 6% tracking error.
Managing the fund will be David Mooney, who has been with Schroders NewFinance
Capital since 2005, when he joined from Merrill Lynch, where he had been responsible
for proprietary investments in commodities funds. Cedric Bellanger will act
as his deputy with three analysts, along with data management, quantitative
research and operational due diligence specialists rounding out the rest of
the team. This team at present manages an absolute return and a relative return
strategy which amount to some GBP2.3bn in assets (as at end-March).
“Commodities products have been coming thick and fast in recent times,
driven by the supply constraints which are contributing to the tightness in
the commodity markets, and this against a backdrop of continuing global growth
– particularly in emerging markets,” Schroders said in a statement.
Adding: “With global economic growth on a sustained track, and concentrated
in emerging markets, and with the costs of commodities exploration and production
under relentless upward pressure, we are in an extraordinary period for commodities.”
The annual management fee carried by the fund will be 60 basis points, with
a performance fee of 10% on relative benchmark outperformance (subject to an
absolute high water mark). The fund is expected to close to investment by the
end of June this year. |
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