Bank of America Merrill Lynch has launched its commodity alpha and beta family of Ucits III funds: the MLCX Commodity Enhanced Beta Fund; the MLCX Agriculture Optimal Crop Fund; and the MLCX Commodity Alpha Fund.
Forming part of the Bank of America Merrill Lynch Invest platform, all three Ucits-compliant funds offer solutions for commodity investors looking to achieve beta and/or alpha exposure to commodity markets.
The funds track underlying indices created by BofA Merrill Lynch Global Research.
The MLCX Commodity Enhanced Beta Fund and MLCX Agriculture Optimal Crop Fund offer investors a long only diversified exposure to commodity markets with optimised, unseasonal roll mechanics. The MLCX Commodity Alpha Fund is a long-short market neutral strategy with low volatility and a high sharpe ratio, and is designed to provide an alternative commodity allocation according to the level of risk/return required.
Eric Personne, co-head of EMEA cross asset retail sales and head of equity and fund structuring at Bank of America Merrill Lynch, says: “As we continue to expand our Ucits III compliant platform to offer high-quality content, both retail and institutional investors alike have access to funds managed by top-tier hedge fund managers, on the one hand, and funds used to deliver ideas based on our global research capabilities on the other. Commodities play an important role in efficient portfolio allocation and we are excited about making these alpha and beta strategies available in a regulated, liquid and transparent fund format."
The funds are currently available for sale to institutional and retail investors in the UK, Ireland, Italy, Germany, Austria, Sweden, Luxembourg and Spain with a management fee level ranging from 0.50 per cent per annum for institutional investors to 1.85 per cent per annum for retail investors.
