The asset manager said that the Schroder Opus Commodity Fund, managed by Schroders NewFinance Capital, its specialist Absolute Return Multi-Managers firm, will be a closed-ended investment company, domiciled in Guernsey.
It will offer investors access to commodities markets, at market beta, by investing in a range of strategies through specialist active managers, complemented by a proprietary commodities futures portfolio managed by Schroders NewFinance Capital.
According to the Schroders, the fund’s objective will be to outperform the DJ-UBS Commodity Total Return Index by 6 to 9% per annum net of fees over a cycle.
It said that the fund will aim to provide 100% exposure to the benchmark index, with a 5% tracking error.
The fund will be managed by David Mooney who has over 23 years experience investing in commodities and his team.
Mooney joined Schroders NewFinance Capital in 2005 from Merrill Lynch, where he was responsible for proprietary investments in commodities funds.
Mooney will be supported by his deputy Cedric Bellanger, three analysts and a team of data management, quantitative research and operational due diligence specialists.
Schroders said that the new investment company will mirror the existing Opus Commodities Core Plus strategy that has been run by the team since October 2007.
The launch will be by way of a placing and order for subscription, with marketing conducted from May 2011 and a target closing date by the end of June 2011.
Schroders UK Intermediary Business managing director Robin Stoakley said that this fund will give investors efficient, quoted access to the commodity markets at a time when continued global economic growth and inflexible supply after the global recession are driving the commodities markets.
