Investment mandate

The Craton Capital Global Resources Fund invests a substantial portion of its net asset value (NAV) in listed equities which have direct exposure to commodities and/or which are active in the exploration, development, production, processing, transport and distribution of commodities or which render services in the commodity sectors.

The sub-fund invests in particular in the following sectors:

  • metals and mines (including although not limited to precious metals, non-ferrous metals, strategic metals, industrial metals, diamonds, etc.); 
  • commodities (including, but not limited to paper and cellulose, forestry products, chemicals and steel, etc.); 
  • fossil fuels and electricity generation (including but not limited to coal, oil, natural gas and uranium, etc.);
  • agricultural commodities and other commodities, utilities and services (including, but not limited to cereals, sugar, coffee, rubber, farm animals, water and electricity, etc.). 

Key aspects of the Fund’s mandate (for full details please refer to the Prospectus):

After deduction of liquid assets, Craton Capital Global Resources shall invest at least two thirds of the fund’s total assets in investment securities (particularly equities) and debt instruments* of companies and issuers from the (aforementioned) commodity sectors; units of investment undertakings for securities or equivalent investment undertakings, which invest their assets according to the guidelines of this investment fund and derivative financial instruments on the mentioned securities.

The fund may invest in derivatives whose underlying instrument constitutes investment instruments or financial indices, interest rates, exchange rates or currencies (within the meaning of the UCITS regulations). In the event of transactions with OTC derivatives, the counterparties must be supervised financial institutions and the OTC derivatives must be subject to a reliable and verifiable valuation on a daily basis and must at all times be capable at the initiative of the UCITS of being alienated, liquidated or closed out by a counter transaction; 

An investment in one particular company or asset cannot exceed 10% of the NAV of the fund.  The Fund may not hold more than 10% of the equity of any one particular company. The sum of holdings in excess of 5% of the NAV of the fund may not excess 40% (of the NAV of the Fund). The fund may invest up to 10% of its NAV in unlisted companies.

* Including debt securities and debt rights denominated in freely convertible currencies (particularly convertible bonds)