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From Sagar Chakraverty, Opalesque Asia:
Melbourne-based APAC Asset Management’s Asia Pacific Energy Metals and Minerals Fund (APEMM) saw its first positive returns in March, up 11.07%. This fund has been down 8.9% since inception on 15-Oct-09 and still down 4.92% YTD.
The fund focuses on investment in listed stocks of Australia and other Asia Pacific mining companies using a long-only absolute return strategy.
Why leveraging on China’s growth?
China is growing by consuming vast amount of metals and minerals and the APEMM fund seeks to capitalize on this growth. Investing in companies under the energy, metals and minerals sector, where China is experiencing scarcity, provides strong leverage to China’s continued growth.
Pieter van Putten, Director of APAC told Opalesque: “We position the fund as an alternative to investing in China itself for investors who like to build up portfolio exposure to the economic growth story in China and elsewhere in Asia, but who feel less comfortable with the coordinates of investing in China itself.”
Therefore, this fund invests in those companies (outside China) that are directly correlated to China’s commodities demand. The fund’s results in March were positively impacted by the better performance of the Australian Stock Exchange’s Metals and Mining index (up 1%YTD and an annualized return of 42.63% as of 31-March), particularly BHP, the largest mining company in the world.
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