Threadneedle launches enhanced commodities fund

Threadneedle has revealed a new fund which will invest across the commodity spectrum.

The firms says it has launched the actively managed commodities fund in response to investor disillusionment caused by the underperformance of passive funds in 2009. 

The new Threadneedle Enhanced Commodities fund will be run by David Donora, who joined the firm in September 2008 to set up a new commodities team.

He previously had spells at MF Global UK (part of Man Group plc) where he was head of structured OTC derivatives, and prior to that was at Refco Overseas as head of OTC derivatives.

'Because the commodity markets are always evolving I believe the way forward in generating superior returns over the long term is through skilled and experienced active management,' Donora said. 'Delivering our macro and fundamentally based investment process in a Ucits III structure makes this fund a real alternative to index tracking in long-only commodity investment.'

He added that in the next decade he thinks nominal investment in commodities will exceed a trillion dollars.

'This will be driven by price appreciation, a broadening of investable commodities and more investors getting on board. Owning commodities is an excellent way for investors to participate in the growth of emerging markets,' Donora said.