Stockholm (HedgeNordic) – An Irish institutional investor is seeking to invest between €25 to €50 million a commodities fund for its fund of funds. According to a request for proposal on Global Fund Search, the targeted investment universe includes both direct and indirect exposure to investible commodities, which may involve the use of derivatives. The preferred fund structure is a UCITS fund or a UCITS-compliant Exchange Traded Fund (ETF).

Search Criteria

• Universe: Investible commodities, direct and indirect exposure, derivatives
  • The use of derivatives must be consistent with UCITS regulations
• Objective: provide exposure to a diversified basket of commodities
• Style: Active, passive or smart-beta, fundamental or quantitative
• Instrument allowed: UCITS Fund or UCITS-compliant ETF
• ESG: This is not a high priority, but the Fund of Funds is overall Article 6.

Minimum requirements

• UNPRI signatory
• Minimum track: 3-year track record preference, but prepared to look at more recent funds.
• The established fund should have €500m+ to avoid ADLs and swing pricing.
• The investor does not want to hold more than 10% of the fund.

Other criteria

• AMC: the investor is giving forward guidance of a target fee range of 50-60bps; however, they are prepared to consider higher fee structures for exceptional products. The strategy holds no investments above 100bps.
• Strategies which include Performance Fees will not be considered
• No direct leverage (other than related to the use of derivatives if applicable)
• Cash positions for liquidity purposes only
• Quarterly calls with PM and monthly attribution data. Ideally, holdings information. Happy to sign an NDA

Investment vehicle

• Fund or ETF
• UCITS compliant
• Domicile: Dublin or Lux
• Daily dealing/Pricing
• Close of business unit prices must be received by 10 am the following morning.
• Intraday prices can be used in the calculation of the NAV price.

Process outline

• Shortlisting during Q3
• Implementation Q3/Q4

Performance data

• Euro (€)
• Net of fees

Deadline
July 05, 2024 (Cut-off: Midnight CET, Expiry date inclusive) 

To review the search and apply, asset managers need to register here on globalfundsearch.com

Questions?

Please contact support@globalfundsearch.com