Schroders has launched the Schroder Alternative Solutions Commodity Total Return, that provide commodities exposure with a flexible approach.
The fund will invest in energy, agriculture and metals sectors worldwide and will rely on a highly flexible strategy including the ability to take short positions and the use of leverage.
It will be managed by Schroders’ commodities team, led by Geoff Blanning.
Blanning, head of Commodities at Schroders said: “Schroder Alternative Solutions Commodity Total Return will provide a flexible and low risk option to those investors who wish to re-establish their commodity market exposure following nearly 5 years of relentless price declines, as well as to those investors looking to participate in commodity markets for the first time.
“The fund will also appeal to those investors seeking liquid alternative investments run by an experienced and specialist investment team.”
Schroders’ global head of Institutional John Troiano added: “Commodities as an asset class has had a difficult few years; however, there are encouraging signs that the fundamentals are now turning positive.
“The new fund is designed for investors who wish to participate in commodity markets to protect against the risk of inflation and invest in a potentially high return strategy, but who also wish to avoid the high downside risk inherent in a fully-invested approach.”
The Uk-headquartered manager specified that the fund is not yet registered for distribution in any jurisdictions but it plans to make it available to professional investors in Austria, Denmark, Finland, Germany, Greece, Norway, Spain, Sweden and the UK.
The strategy will be available for public distribution in Luxembourg, the Netherlands, Portugal, Hong Kong, Macau and Singapore and to qualified investors in Switzerland.
'Excellent growth opportunity'