Zurich, Switzerland-based financial services firm Plenum Group is set to launch the Plenum Specialized Commodity Fund on March 1. The fund of funds will invest in commodity funds that find opportunities in unconventional and traditional commodity and energy markets, and is expected to launch with some $6 million in equity.
Initially, the Plenum fund will invest in six underlying managers with exposure to niche areas such as cash and derivative freight markets, electricity trading, nuclear power and other, more traditional commodity and energy markets, according to Haakon Haland, portfolio manager. It will not invest in more than 10 underlying managers.
“We’re looking for manages who are not that mainstream,” said Haland. The underling managers’ track records range from just a few months to as much as 18 months, with assets in between $10 million to $100 million.
The new British Virgin Islands-domiciled fund of funds charges a 1.5% management fee and 20% performance fee, with a $100,000 minimum investment requirement.
The Specialized fund is the second fund of funds from Plenum. The group currently manages a Pan-Asian fund of funds, dubbed the Plenum Asian Dragon Fund, and a single-manager fund that trades in the Nordic electricity market, the Plenum Power Fund.