Swiss & Global Asset Management is set to launch four commodities funds on October 1 that will buy and store quantities of aluminium, copper, nickel and zinc.
The JB Industrial Metals Funds aim to deliver the price performance of the metals after safekeeping, insurance and management fees.
“We store the metals in various warehouses around the world and are able to reduce costs by constantly monitoring where demand, and therefore storage costs, are lowest; and adjusting locations accordingly,” says Stephan Müller, product developer of industrial and precious metals funds at Swiss & Global Asset Management.
The company says that by buying the metals themselves, rather than investing via futures contracts, the funds can minimise trading fees and “roll losses”. A roll loss occurs when investors in futures contracts must roll their invested assets into a new contract to avoid physical delivery.
The industrial metals funds are only for qualified investors and are supervised by the Swiss Financial Market Supervisory Authority.
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