VAM Funds (Lux) global government bond will invest globally in government bonds that are rated AAA to AA. It is managed for VAM Funds by Swiss boutique manager Peers SA, which established by Annelise and Steven Peers, with South African financial services company Coris Capital in 2000.
The new fund aims to produce returns above cash and to reduce volatility in investors’ portfolios. Fund managerAnnelise Peers will combine top-down and bottom up research to select bond for the fund and will use quant screens and other technical research models to determine the best time to buy bonds. VAM Funds says the investment-grade bonds in which the fund invests will produce a low-risk and highly liquid portfolio, with the fund targeting a yield of 4 per cent after charges.
The VAM Fund (Lux) commodity equities fund aims for growth by investing in the equities of companies involved in, or linked to, commodities. It is managed by VAM Funds by Fleming Family & Partners, and will comprise a core of 30 to 70 per cent in the equities of big commodities companies, which will be reduced in declining markets to preserve capital.
The remainder of the portfolio is invested in higher growth stocks and short exchange traded funds. As satellite holdings, the higher growth stocks are typically less liquid than the core holdings but are smaller to control risk. The short ETFs track indices like conventional ETFs, but bring a defensive element to the portfolio as they benefit from market declines rather than growth.
VAM Funds sees commodities as a way of gaining exposure to growth in emerging markets, as demand for commodities in emerging market countries such as China and India is strong,
Both VAM funds may appeal to investors looking to add specific exposure to government bonds or commodity-based equities to their portfolios. VAM Funds has been around since 2001 but as a recent entrant to the UK IFA market, it may have to build up more of a profile to attract some advisers.