The Sicav-specialised Columna Commodities Fund, domiciled in Luxembourg, will be managed by YAS and independent fund manager LFP, whose directors include Julien Renaux, Luc Leleux and Jonathan Burger.
The fund has adopted a “unique” three-pillar strategy: ‘Pillar I ’ will invest chiefly in gold while ‘Pillar II’ will trade in commodities and ‘Pillar III’ is focussed on arbitrage within the mining sectors.
The fund expects to invest between 20% and 50% of its total assets in each strategy with fund managers optimising allocation to the pillars, depending upon market situations.
According to Aaron Pacitti, executive director and co-founder of YAS Investment Management, the fund will allow advisers to have exposure to all types of commodity investments within one fund.
He said: “Traditionally clients are made to choose between physical-only funds, trading funds or arbitrage funds. All of these options have various risks associated with them due to market volatility, liquidity or exposure to a specific mine.
“Columna is unique by combining all these elements in one fund allowing advisers to have exposure to all types of commodity investment. This will allow for a highly liquid fund that can outperform commodity markets regardless of market conditions,” he added.
Pacitti said that he hoped that the fund would help counter the paucity of Sicav commodity funds available to international advisers.
“The market place is flooded with funds domiciled in offshore jurisdictions. However, in light of recent developments we believe that advisers’ number one priority is now the security and liquidity or their clients’ money. We hold exactly the same view and took the decision to domicile the fund in Luxembourg.”
According to YAS, the projected yield is expected to be ‘well over the hurdle rate of 7%’ and it aims to provide the investor with ‘a steady level of volatility and consistent returns’.
A minimum investment of €125,000 is required in the fund which is open to experienced investors in five currencies – dollar, euro, sterling Swiss franc and Swedish kroner with uncapped returns.
Fees include a 1.5% annual management charge and a 20% performance fee above the initial 7% hurdle. There is no initial joining fee.
