Managed Risk, Accumulation type fund

Quarterly hurdle rate of 1%

ISIN: Class A EUR Shares:

MT7000019048

ISIN: Class B USD Shares:

MT7000019055

Commodity Trading Fund

 
The Investment Policy

The Sub-Fund aims to lock in inter-day and position holding profits from temporary mispricing due to informational asymmetries (time zone, geographical, degree of investor’s sophistication) and anomalies in pricing models on derivatives exchanges and between exchanges for the same contract.

 

The competitive advantage for the Sub-Fund is that it is an approved Foreign Portfolio Investor ("FPI") in India. This enables the Sub-Investment manager to have direct market access to the major domestic Indian derivatives exchanges to execute arbitrage and spread strategies on-shore against off-shore listing of the same contracts. Further, the FPI category means that these transactions are tax efficient.


The Sub-Fund’s assets are represented by a portfolio composed of derivatives, structured notes, bonds and investment funds involved in exchange based commodities trading and currency derivatives. The Sub-Fund may take long or short positions.

The Investment Manager, Agon Asset Management Limited, has appointed Richcomm Global Services DMCC as a Sub-Investment Manager which brings a wealth of global commodity and derivatives experience between emerging market exchanges and other global platforms. 


The expected role of all funds investment components will be to generate daily/weekly marginal returns with no correlation with other standard benchmarks like stock indices. Investment strategies will be restricted to Relative Value, Spread Trading and Tactical Trading.

 
The Rationale

The Sub-Fund invests in commodities instruments to take advantage of the opportunities currently available in the industry between emerging and establish market platforms in a regulated environment.


Almagest SICAV plc - Commodity Trading Fund seeks to yield income and preserve capital with managed price and capital risk, independent of economic market cycles, investing predominantly in pure arbitrage and statistical arbitrage opportunities across asset classes.


The Fund focuses on the decades of actual commodity trading experience of the founders and the peer group.  This includes prominent industry leaders from the commodity trade in Europe with global exposure in physical markets and derivatives with some of the largest trading houses in the world.

 
Back Testing

As part of managed futures accounts, the INR/US dollar currency arbitrage and commodity spread strategies (WTi/Brent, LME/CME copper, etc.) which are the same for the fund have been back-tested from 2015 to 2019.  These have demonstrated a consistent return of 7% p.a. net to investors.  Over this period, the maximum draw-down has been 5% when spreads were rolled from one period into another.

Contact:
Our Address:

2 Sir Augustus Bartolo Street

Ta'Xbiex  XBX 1091

Malta

+356 2260 5018

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