Threadneedle set to launch absolute return commodities fund

17 July 2012 | By Joanne Ellul

Threadneedle Investments is set to launch an absolute return commodities fund later this month, Fundweb understands.

The Threadneedle (Lux) Absolute Commodities fund will be run by fund manager Nicolas Robin, who was appointed co-manager on the Threadneedle (Lux) Enhanced Commodities fund in March last year. He joined the Threadneedle commodities team in May 2010 from JP Morgan Chase.

The fund is aiming for a return of 10 per cent to 15 per cent and will have a market neutral strategy. It employs a similar strategy to the Enhanced Commodities fund that invests in a range of commodities derivatives including industrial metals, precious metals, energy and agriculture.

The base currency of the fund is US dollar, but it has a sterling share class. The charges on the fund are 1.75 per cent for the retail share class and a performance fee of 15 per cent for returns over one month US$ Libor.

The Enhanced Commodities fund aims to outperform its benchmark by 3-6 per cent per annum. It has delivered 3.33 per cent year to date as of March 31 compared to 1.87 per cent delivered by the benchmark, the DJ UBS Commodities Index.

Threadneedle declined to comment on the launch.

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