Laying its faith on commodity companies worldwide, ING Investment Management India on Monday launched ING Optimix Global Commodities Fund, India’s first multi-manager global commodity equity fund.
The primary objective of the scheme is to achieve long-term capital growth by investing primarily in units of global commodity oriented mutual funds. The scheme opens on July 29 and closes on August 25.
The scheme carries an entry load of 2.50 per cent for applications below Rs 5 crore and nil for applications of Rs 5 crore and above. There is no exit load either.
Explaining the rationale behind the new launch, Vineet Vohra, MD and CEO, ING Investment Management India, said, “In the context of high inflation and falling equities in the stock market, commodities do well in helping one to diversify his portfolio. Even institutional investors are allocating funds more and more into commodities.”
Vohra is eager in taking a cue from the institutional investors and wants retail investors to invest in commodity related equities especially in fall equity markets and high inflation.
“Commodities do well during high inflation,” added Vohra.
According to him, “Optimix is not a commodity fund. We are going to invest in commodity equities globally.”
Under the multi-manager concept, the fund will invest in the global commodity funds managed by some world renowned global asset management houses like Credit Suisse, First State Investment, JP Morgan, Martin Currie, Societe Generale and Investec.
The fund house is targeting a corpus of Rs 20,000 crore in the new fund offer. Out of the total corpus 65-100 per cent will be invested in global mutual funds which invest in commodity related securies, 0-25 per cent in debt funds, liquid funds, money market funds and 0-10 jper cent in money market securities.
Interestingly, ING OptiMix fund shall not invest in the single schemes of ING Mutual Fund. Further, it shall not invest in those in overseas mutual fund which have an exposure to Indian securities market through participatory notes. The scheme is large cap biased with 63 per cent of the portfolio.
“Global commodities offer diversification as they have a low correlation with other asset classes in addition to a wide geographical asset ownership. Commodity exposure offers a strong hedge against inflation making it a relevant asset class especially in the current scenario,” said Arvind Bansal, chief investment officer – Manager Investments, ING Investment Management India. He feels exposure to an alternative asset class like commodities would provide better risk adjusted returns to an investors’ overall portfolio.
Vohara, who feels commodity equities can deliver better returns than commodities, said, “for investors, a multi-manager solution offers simplicity, efficient diversification of risk and the potential for superior, consistent performance.”
The fund scheme is benchmarked to Dow Jones World Basic Materials Index (40 per cent), Dow Jones World Oil and Gas Index (40 per cent) and MSCI AC World in INR terms (20 per cent).
The primary objective of the scheme is to achieve long-term capital growth by investing primarily in units of global commodity oriented mutual funds. The scheme opens on July 29 and closes on August 25.
The scheme carries an entry load of 2.50 per cent for applications below Rs 5 crore and nil for applications of Rs 5 crore and above. There is no exit load either.
Explaining the rationale behind the new launch, Vineet Vohra, MD and CEO, ING Investment Management India, said, “In the context of high inflation and falling equities in the stock market, commodities do well in helping one to diversify his portfolio. Even institutional investors are allocating funds more and more into commodities.”
Vohra is eager in taking a cue from the institutional investors and wants retail investors to invest in commodity related equities especially in fall equity markets and high inflation.
“Commodities do well during high inflation,” added Vohra.
According to him, “Optimix is not a commodity fund. We are going to invest in commodity equities globally.”
Under the multi-manager concept, the fund will invest in the global commodity funds managed by some world renowned global asset management houses like Credit Suisse, First State Investment, JP Morgan, Martin Currie, Societe Generale and Investec.
The fund house is targeting a corpus of Rs 20,000 crore in the new fund offer. Out of the total corpus 65-100 per cent will be invested in global mutual funds which invest in commodity related securies, 0-25 per cent in debt funds, liquid funds, money market funds and 0-10 jper cent in money market securities.
Interestingly, ING OptiMix fund shall not invest in the single schemes of ING Mutual Fund. Further, it shall not invest in those in overseas mutual fund which have an exposure to Indian securities market through participatory notes. The scheme is large cap biased with 63 per cent of the portfolio.
“Global commodities offer diversification as they have a low correlation with other asset classes in addition to a wide geographical asset ownership. Commodity exposure offers a strong hedge against inflation making it a relevant asset class especially in the current scenario,” said Arvind Bansal, chief investment officer – Manager Investments, ING Investment Management India. He feels exposure to an alternative asset class like commodities would provide better risk adjusted returns to an investors’ overall portfolio.
Vohara, who feels commodity equities can deliver better returns than commodities, said, “for investors, a multi-manager solution offers simplicity, efficient diversification of risk and the potential for superior, consistent performance.”
The fund scheme is benchmarked to Dow Jones World Basic Materials Index (40 per cent), Dow Jones World Oil and Gas Index (40 per cent) and MSCI AC World in INR terms (20 per cent).
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