Natural resource specialist RAB Capital, with AUM of $1 billion, has launched two UCITS III funds with a combined initial size of US$100 million on the Luxembourg Financial Group’s UCITS platform
The RAB Global Mining and Resources UCITS Fund (US$70 million) and the RAB Gold and Precious Equities UCITS Fund (US$30 million) will begin trading on LFG’s Liquid Alpha platform as of April 11.
The RAB Global Mining and Resources fund will offer daily liquidity and follow the investment strategy of the Cayman-based RAB Global Mining and Resources Fund—a long/short equity strategy focused on equity investments
in larger capitalization companies in the natural resource sector.
The RAB Gold and Precious Equities UCITS Fund will also be a long/short equity fund with daily liquidity focused on large to mid-cap companies in the precious metals exploration and production sub-sector.
Both funds will use permanent hedging, usually a combinations of main market indices and sector-specific instruments, to protect capital and reduce volatility.
Besides focusing on demand for specific commodities driven by the rapid urbanization and industrialization of China, India and other developing regions, the team are focused on the tightness in commodity markets resulting from supply constraints. The Global Mining and Resources Fund’s investment universe consists predominantly of base metals, precious metals,
steel and ferrous metals, and energy mining.
Charles Kirwan-Taylor, CEO of RAB Capital said:
“We believe the natural resource sector is a particularly exciting one especially in the current environment where inflationary pressures are starting to emerge and supply constraints are beginning to bite. As our strategies are equity based they fit well within the UCITS framework.”