Aurora launches new fund
Aurora Funds Management, an Australian company that aims to provide retail investors with access to wholesale investment strategies, has launched a new commodities fund into the local market.
The Corals Commodities Fund provides exposure to an index designed by Barclays Capital (the Barclays Capital Commodities Out-Performance Roll Adjusted Liquid Strategy Index), which incorporates 12 liquid commodities indices across base and precious metals, energy and agriculture.
The fund employs a risk-managed, long-short strategy to extract positive returns in both rising and falling commodities markets.
According to Aurora managing director Alastair Davidson, the low correlation commodities have to traditional asset classes is a key reason for investing in them.
“Since 2003, the CPI [consumer price index] in Australia has increased by around 2.53 per cent per annum, whereas certain energy and agricultural commodity prices have increased by as much as 27.75 per cent and 20.82 per cent per annum, respectively over the same period,” he added.
“Investing in commodities has the potential to counteract the deterioration in consumer buying power caused by inflation.”
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