Compared with other alternative asset classes, such as hedge funds and private equity, which are well known for being capacity constrained, Commodities are extremely liquid. This means establishing a position through a pooled vehicle, such as the Hermes Commodities Index Fund, is very easy. Given the dominance of producers and buyers of commodities, these non-financial participants assure market dynamics and mean that investors hold only a small percentage of the overall number of open futures positions, at any one time. This allows pension fund investors to trade into and out of the asset class in size without influencing the market. Furthermore we believe there is ample scope for considerable additional pension fund investment without significantly affecting the market.
Hermes Commodities Umbrella Fund Limited is authorised by the Guernsey Financial Services Commission and its constituent units are listed on the Channel Islands Stock Exchange.
