Bestinvest says
Schroder AS commodity fund is unusual in its use of derivatives and direct equity to reduce the volatility of returns. However the performance of the fund has not been in line with some of the peers. The fund is now of a considerable size and Schroders have hard closed the fund, i.e. they are not taking any further investments. Investors should look to Investec Enhanced Natural Resources as a suitable alternative.
The fund is unconstrained, long only and un-levered and features active asset allocation between commodity markets, equities and cash. Investments will be made in futures (50-100%), commodity swaps, equities (0-25%) and treasury bills. Positions will be determined firstly through fundamental analysis including a supply / demand model for each commodity. Quantitative analysis then follows and includes a multi-linear regression model featuring the 3-10 factors that have been determined to be most responsible for driving the commodity price. The final step involves technical analysis (including seasonal patterns) which aids with timing entry / exit of positions.