U.K.-based asset management firm London & Capital is making a push into the commodities market with its latest offering. The firm has launched the Agricultural Commodities fund, a futures-based vehicle, to take advantage of increasing global demands for alternative energy and agricultural foods.
The fund will invest in seven key commodities: corn, soy beans, wheat, cotton, coffee, sugar and cocoa, via in futures contracts of commodity indices.
Stephen Westwood, director of investment funds at London & Capital, said that while other futures funds buy and sell futures contracts before they expire, “the process this fund uses looks at the futures market and decides which is the optimum future to buy, over a period of up to 13 months.”
The fund charges a minimum investment of £60,000 (US$120,000) and a management fee of 0.5%.
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