Prim’ Finance launches commodities fund
Prim’Finance, a french asset management company specialized in commodities, has launched a new Ucits III compliant fund to invest in the energy, base metals and precious metals sectors.
The fund will invest directly in commodities using total return swaps on a commodities futures customized index.
Its investment universe covers oil products, natural gas, aluminium, copper, lead and zinc as well as gold, silver, platinum and palladium.
The fund’s investment process is both quantitative and qualitative applying an actively managed allocation between the various commodities.
The fund is managed by Benjamin Louvet (pictured), one of the founders of Prim’ Finance and currently its managing director.
Louvet says that as commodities increase in rarity, the returns the fund will make in the long run should increase. He is aiming for 10% returns per year in the long term.
Commodities will inevitably become scarcer in the next 30 years, he added, as there has not been a major oil find for 20 years and China’s demand for metals is surging.
The fund’s short term performance will depend on the way Europe emerges from the current crisis, Louvet noted.
The fund, which has been operative since June 2011, has attracted €12m of investment so far.
Prim’ Finance’s investor base is French although Louvet says the company is increasingly concentrating on the rest of Europe, namely Switzerland, Belgium, Luxembourg and the UK.
Prim’ Finance was established in 2002 by its three founding partners who had previously worked together at BNP Paribas. Today it has total assets of €110m.