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Investec Enhanced Natural Resources – new 4 star rating

By JOHN DAVEY 01/10/2009

Investec Enhanced Natural Resources – new 4 star rating by John Davey
A UCITs 3 fund with the ability to short both equities and commodities. Under UCITs rules a fund cannot take delivery risk, so direct holdings of commodities are not allowed, however the range of ETNs / ETCs has expanded over recent years to include all the major liquid commodities, and ‘short’ versions of these. The Fund aims to achieve long-term capital growth, primarily through investment in a globally diversified portfolio of resource equities including metals, mining, energy, soft commodities, agriculture and related industries and commodity securities Consequently performance in 2008 was less volatility and ahead of long only JPM natural resources. The Investec team do not consider this an absolute return product, have effectively increased beta this year, and investors should note that there is a fairly punitive performance fee over a libor hurdle (20%).
 
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