|Global Multi-Commodities Fund|
|Investment objective||Achieve short-term capital growth by investing only in global commodities|
|Fund mandate||Emphasis on active commodity selection
Remains fully invested in global commodities at all times
Focus on maximum 30 commodities
|Asset allocation||Funds Weights As of 10th March 2008
Soft Commodities: 41%
Hard Commodities: 20%
Oil & Gas: 39%
|Return objective||20% over a period of 12 months|
|Risk of monetary loss||6% over a period of 12 months|
|Recommended term||12 months and longer|
|Target market||Investors who are in their wealth buildup phase and require little income yield in the short term
Investors seeking exposure to the global commodity market
Investors who are able to withstand short-term market fluctuations in pursuit of maximum total returns over the short term
|Fee structure (excl. VAT)||Administration fee: 2%
Management fee: 1.5%
|Income distribution||12 months
Lock in Period: 12 months (early redemption penalties apply)
|Investment||1 share: $100.00
Minimum: 300 shares or $30 000.00
Additional: 100 shares or $10 000.00
|Fund category|| Soft Commodities
Oil & Gas
|Subscription date||10th and 25th Day of the month
Initial Offer Price: $100.00
Global Multi-Commodities Fund
The financial markets downward ride is mainly due to the problems we have with the housing market which is further sinking into the gloom. The problems with the housing market began with the Subprime Mortgage Crisis which started back in mid 2007.
Together with the falling dollar, record high energy and commodity prices, global inflation looks set to hit hard on consumers. Although the Federal Reserves has decreased interest rates together with injecting liquidity into the financial markets; the damage seems too great now to contain and the crisis looks set to continue for the next 1 or 2 years.
“Using Opportunity, Forecast & Knowledge to Obtain Better Standings.”
With this in mind, HCB Trust Ek. för., in association with National Federal Capital Ltd., introduced the Global Multi-Commodities Fund (GMC fund) to give investor the opportunity to ride on this tremendous upswing in the commodities prices. While the US might be heading for a recession, demand for all commodities might be affected, this shortfall in demand will be more than offset by the increased in demand from Asia, mainly China and India. We do see some more upside in most commodities prices in the next 12 to 24 months ahead.
For a more detail discussion on how you can benefit and invest in the Global Multi-Commodities Funds, please contact your respective financial advisor.