Isatis Investment Global Natural Resources Flex

WSP commentary

Draft commentary, machine-generated from the fund's monthly factsheet dated 30.06.2026; fund document, not yet reviewed by WSP.

Investment rationale

The fund is designed to achieve capital growth through a focused portfolio of natural resource stocks, so it is positioned as an equity-based specialist allocation rather than a broad diversified holding. The prospectus states a recommended investment horizon of more than five years, and the marketing document says the fund should be considered only as part of a balanced portfolio. Its distinct role comes from concentrated exposure to natural resources in the broad sense, with flexible asset allocation and the ability to hold meaningful cash when conditions warrant. The fund is therefore suited to investors seeking long-term capital appreciation through commodity-related equities and willing to accept the risks and volatility of that segment.

Investment strategy

The compartment’s main objective is long-term capital appreciation, while the marketing document describes the goal as achieving capital growth through a focused portfolio of natural resource stocks. It invests mainly, without geographic or currency limitation, in small-, mid- and large-cap international companies linked to raw materials and selected for strong fundamentals and attractive valuations; it may also invest in ETFs and structured products that track commodity-related prices without physical delivery, and in "units" combining listed shares with warrants, subject to a maximum occasional lock-up of four months. The manager selects securities without reference to any index, and the fund is explicitly actively managed with no benchmark used for portfolio construction. The fund may hold up to 20% in cash on demand deposits on an ancillary basis and up to one-third of net assets in bank deposits, money-market instruments and money-market funds for investment or derivative-position hedging purposes; this liquid allocation can temporarily rise to 100% for defensive purposes in exceptionally unfavorable markets, and the fund may use derivatives for hedging and efficient portfolio management. The available class shown is B-class, a capitalization share class in EUR, and the recommended holding period is above five years.

Investment philosophy

• The investment universe is global natural resources: international small-, mid- and large-cap companies linked to commodities in the broad sense, alongside ETFs and structured products that replicate commodity-related prices without physical delivery.

• Security selection is based on in-depth fundamental analysis, with a focus on valuations and on an advantageous upside-versus-downside profile using conservative assumptions; the manager states that security selection is made without regard to any index composition or weight.

• Portfolio construction is flexible at the asset-allocation level, allowing direct equity exposure, commodity-linked listed instruments, currency-related techniques, derivatives for hedging and portfolio efficiency, and a defensive rise in liquid assets when market conditions are exceptionally unfavorable.

• Current positioning as of the report shows 27.3% in precious metals, 22.4% in industrial metals, 16.6% in energy, 13.4% in agricultural exposure, and 20.3% in cash; geographically the fund shows 22.4% Canada, 32.6% World, 7.1% U.S., 10.7% Latin America, 4.2% Europe, 2.7% Africa, and 20.3% cash.

• Risk control is implemented through legal and prospectus limits: cash up to 20% on an ancillary basis, up to one-third in deposits, money-market instruments and money-market funds for investment or hedging, temporary defensive liquidity up to 100%, no more than 10% in UCIs, and derivative use limited to hedging and efficient portfolio management under the commitment approach.

Management team

The marketing document names Boris Cukon and Vincent Vandamme as the fund managers. They are presented under European Capital Partners S.A., the fund’s investment manager, with contact telephone details in the marketing document.

The asset manager

The legal management company is Funds Avenue S.A., and the investment manager for ISATIS INVESTMENT – Global Natural Resources Flexible Fund is European Capital Partners (Luxembourg) S.A. The prospectus identifies European Capital Partners (Luxembourg) S.A. at 153-155 rue du Kiem, L-8030 Strassen, Luxembourg, while the marketing document gives the manager website and contact details and notes that European Capital Partners S.A. is authorized and regulated by the CSSF. Funds Avenue S.A. is the legal entity responsible for issuing the marketing document and is the SICAV’s management company under Part I of the Luxembourg 2010 law.

Performance analysis

Source: manager factsheet dated 30 June 2026. The manager commentary focuses on a correction in gold-related equities after a prior parabolic move, noting especially steep declines in mid-tier producers and development companies, and characterizes this as a needed and largely completed correction. The commentary points to very depressed sentiment in gold, large ETF outflows, continued and accelerating purchases by the People’s Bank of China, resilient Asian physical demand, strong OTC demand and renewed central-bank buying as support for a constructive contrarian view on gold. Outside gold, the manager emphasizes record-strength copper prices, citing expected supply deficits, demand growth from electricity generation, electric vehicles, renewables and AI data centres, supply setbacks at Grasberg, Kamoa-Kakula and El Teniente, and rising copper mine costs that imply the need for high incentive prices.

Strengths

The fund is differentiated by its narrow specialization in global natural resources combined with flexible asset allocation rather than benchmark-aware positioning. The manager can invest across precious metals, industrial metals, energy and agriculture, and can also use ETFs, structured products and selected "units" with warrants when eligible. The documents also highlight the ability to hold substantial cash and begin redeploying it tactically, which makes the strategy more flexible than a fully invested sector fund. Its active, valuation-focused process and freedom from index weights are presented as core distinguishing features.

Risks

The marketing material and prospectus name market risk, equity market risk, interest-rate risk, credit risk, currency risk, liquidity risk, counterparty risk, risks associated with derivative instruments, and risks associated with investments in UCI units. The fund’s structure adds concentration risk because it focuses on natural-resource-related equities and commodity-linked exposure, and the documents specifically warn that investment in commodity stocks carries risks and volatility. Currency risk arises because the portfolio can invest without geographic or currency limitation and can use currency-related techniques and instruments, while liquidity and valuation risk can be heightened by exposure to small- and mid-cap companies, structured products and occasional private placements in "units" with up to four months' lock-up. The prospectus also states Article 6 SFDR status and says the fund does not integrate sustainability into the investment process.