French asset management company Prim’Finance, has launched a new UCITs III commodities fund, which invests only in the energy, base metals and precious metals sectors.

Prim Commodities is not invested in stocks of companies involved in these three sectors, but directly in commodities using total return swaps on a commodities futures customised index.

Managed by Benjamin Louvet, and featuring daily liquidity and an annual management fee of 2 per cent, the fund’s investment process is based on an actively managed allocation between the various commodities, as well as a flexible approach. The fund’s investment universe covers oil products, natural gas, aluminium, copper, lead and zinc as well as gold, silver, platinum and palladium.