H3 Commodities Fund

The Fund

The H3 Commodities Fund is a long only absolute return fund which seeks to provide investors exposure to a diversified basket of almost 30 Commodities markets, with the aim of providing protection in volatile markets.

The Fund invests in listed underlying commodity markets - not in individual companies - and hence has historically displayed little correlation to the Australian sharemarket. These markets include grains - such as corn and wheat; food - such as coffee and cocoa, precious metals - such as gold and silver; livestock - such as cattle and hogs; energy - such as oil and gas; and industrial metals such as Copper and Zinc.

The H3 Commodities Fund is long only, benchmark unaware, and has the ability to allocate  to cash in the event of extreme individual market volatility (such as was witnessed in the GFC).

Investment objective

The investment objective of the Fund is to provide investors with an actively managed commodities portfolio that seeks to generate returns that are equal or superior to that of major global commodity indices with the same or lower volatility, after fees and expenses, over a medium to long-term time horizon.

Key benefits of the Fund

• Access to commodities with lower volatility. The Fund is actively managed and strategically allocates between cash and commodity exposure to effectively reduce volatility.
• The Fund is diversified across the world's most liquid commodity markets, including energy, industrial and precious metals, grains, livestock and other soft commodities.
• The Fund invests in highly liquid futures markets to gain access to commodities. These markets trade around the clock.
• The investment team is highly experienced in commodity futures trading and has been actively investing in the commodities market since 1995.