MSFJ International Commodity

Investment objective and approach: The fund aims to give investors a diversified exposure to commodities and firms operating in this sector primarily through commodity ETFs, stocks and derivatives. Besides focusing on raw materials our fund invests mainly in the energy sector. As a benchmark for the commodity performance the Bloomberg Commodity TR Index (BCOM) is taken; while as a benchmark for the stocks we use an index such as the MSCI World. Strategy: Data shows that inflation is constantly rising. In February 2022 the US inflation peaked with 7,5%, (the highest of the last 40 years). It is our expectation that inflation will remain on a high level at least for the investment period. This inflation tends to affect commodity prices positively as well as companies operating in the commodity sector. Furthermore due to the ongoing tensions between Ukraine and Russia oil and gas prices also appreciated heavily during the last few months. Therefore, we allocated our portfolio into two segments: - On the one hand, we follow an aggressive investment strategy by allocating 50 percent of our investment sum into stocks operating in the commodity sector. - On the other hand, we diversify our portfolio by directly investing into commodities through distinct ETF’s and derivatives. Our fund operates globally! Sectors allocation: 1- Energy, Oil and Gas. 2- Metals, with a distinct focus on the production chain of batteries. 3- A basket with other relevant commodities is included to provide a minimum level of diversification within our fund. Trading principles: 1- Based on the newly released inflation and interest data, the capital might be reallocated between commodities and stocks. The allocation will be reevaluated on a weekly basis. 2- Moreover we adjust our portfolio allocations according to international economic and political developments, which affect commodity prices ( positively or negatively) on a continuous basis.