Spain’s Quadriga Asset Managers has launched Igneo Fund, an absolute return strategy investing in the precious metals sector.
The Igneo Fund seeks to provide investors with a liquid absolute return strategy with a dual objective of capital preservation and upside participation to the long-term performance of precious metals sector (principally gold, but also silver, platinum and palladium).
The fund will invest in a diversified basket of transferable securities – including exchange traded commodities (ETCs) reflecting the movement price of gold, silver, platinum or Palladium -, but also equity and equity-related securities of companies engaged in the production of those precious metals. It will not invest directly in physical gold, silver, platinum or palladium bullion.
The net exposure to gold ETCs will remain at all times below 35% of the fund’s net assets, while net global exposure to ETCs on other eligible precious metals will not exceed 20% of the fund’s net assets. The remaining part will be invested in diversified mining equities, price insurance instruments and liquid assets including government bonds, cash, and cash equivalents.
As the fund may invest in instruments issued by entities located in multiple countries, including emerging countries, it may frequently have significant exposure to foreign currencies and investments.
According to the fund’s literature, the fund is suitable for investors with a reasonable level of knowledge of the sector of gold and other precious metals, seeking a stable income with moderate level of volatility.