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United Commodities Plus Fund

UOB Asset Management has launched another fund that invest into commodity futures - 'United Commodities Plus Fund'. The fund is investable using Cash and SRS. It started its trading on 16 Jun 2008.

There are some features that is unique to this 'commodity-plus' fund:

  1. It invests into commodity futures: Agriculture, Energy, Precious Metal and into Treasury Inflation-Protected Securities (TIPS) with asset-mix of 40-30-20-10.

  2. It deploys momentum trading strategy. Majority of the portfolio allocation, in this case 40%, will be allocated to asset type (Agriculture, Energy, Precious Metal and TIPS) that had delivered the best return in last 12 months (from 16 Jun 2007-15 Jun 2008); 30% into second best performer; 20% into the third best performer and 10% into the 'worst' performer. The portfolio will be rebalanced to 40-30-20-10 every six months.

  3. Attempt to distribute up to 6.88%p.a. every quarter with the first distribution to be made on the last dealing day of Sept 2008.