Vontobel Commodity

Fund commentary

Investment rationale

The fund is an actively managed commodity strategy intended to participate in the growth of commodity markets over the medium to long term, with a recommended holding period of 5 years. It is classified in SRI category 4 out of 7, described as a medium risk class, and the key information document states it is intended for investors with knowledge and/or experience of these products who can bear losses up to the amount invested. The CHF share class is continuously hedged against the sub-fund’s main currency, although not all currency risks are necessarily covered. Given its focused commodity exposure implemented through derivatives and index-linked structures, it is a distinct specialist allocation rather than a broad multi-asset holding.

Investment strategy

This Luxembourg-domiciled UCITS sub-fund, classified under SFDR Article 6, aims to achieve investment returns in US dollars and to participate in the growth of commodity markets over the medium to long term. It invests worldwide primarily in commodity markets via derivatives based on commodity market indices, baskets of such indices, exchange-traded commodities, corresponding certificates, and swap transactions; it may also invest up to 10% of net assets in UCITS/UCIs for commodities exposure. To cover derivative obligations, it invests in a collateral portfolio of bonds, bank deposits, time deposits, short-term money market instruments, and interest-bearing securities with residual maturity of up to 30 months; up to 33% of net assets may be invested outside the main universe in other securities, instruments, asset classes, countries, regions, money market instruments and bank deposits, and up to 20% may be held in bank deposits at sight. The fund is managed with reference to the Bloomberg Commodity Index TR (CHF hedged), which is used both as a guide for the investment universe and for performance comparison; income is reinvested and the CHF share class is continually hedged against the sub-fund’s main currency.

Investment philosophy

• The investment universe is centered on commodity exposure worldwide, primarily through derivatives linked to commodity market indices, baskets of such indices, exchange-traded commodities, corresponding certificates, and swap transactions, with possible additional exposure through commodity-focused UCITS/UCIs up to 10% of net assets.

• The investment team combines proprietary quantitative models with fundamental analysis to dynamically select what it considers the most promising opportunities as markets change.

• The process includes taking active positions on commodity futures curves, with the stated aim of capturing returns from both moves in commodity spot prices and the active rolling of commodity futures contracts.

• Derivative obligations are covered through a collateral portfolio invested in bonds, bank deposits, time deposits, short-term money market instruments and interest-bearing securities with residual maturity of up to 30 months; up to 33% of net assets may be invested outside the main universe for investment objective and/or liquidity management, and up to 20% may be held in bank deposits at sight.

• Sector exposure as of 31 August 2026 was led by Energy at 39.0%, followed by Grains at 26.4%, Precious Metals at 16.9%, Industrial Metals at 15.4%, Softs at 7.3% and Livestock at 3.5%, while the Bloomberg Commodity Index TR (CHF hedged) serves as both investment-universe guide and benchmark.

Management team

The factsheet names Kerstin Hottner under portfolio management. No other named portfolio managers are listed.

The asset manager

The product manufacturer and management company is Vontobel Asset Management S.A., 18, rue Erasme, L-1468 Luxembourg. The documents state that Vontobel Asset Management S.A. is part of Vontobel Group and is authorized in Luxembourg and supervised by the Commission de Surveillance du Secteur Financier. The fund itself is a sub-fund of Vontobel Fund, an umbrella fund with multiple compartments.

Strengths

A distinguishing feature is its explicit focus on commodity markets through derivatives and related index-based instruments, combined with active management of commodity futures curves rather than simple static index replication. The process blends proprietary quantitative models with fundamental analysis, and the manager has full investment discretion within predefined limits. The structure also includes a dedicated collateral portfolio of short-dated and liquid instruments to cover derivative obligations. Practical features stated in the documents include daily dealing on Luxembourg business days, reinvestment of income, swing pricing eligibility, and a CHF-hedged institutional share class.

Risks

The key information document classifies the fund at SRI 4 out of 7 and describes it as a medium risk class, with no capital protection and the possibility of losing some or all of the investment. The documents name performance, market, operational, liquidity, fixed income, credit, interest rate, alternative asset class, commodity investment, financial derivative instruments, total return swap, leverage, currency and sustainability risks. These risks are linked to the fund’s use of derivatives and swaps for commodity exposure, active positions on commodity futures curves, investment in collateral instruments such as bonds and deposits, and the fact that the share class currency hedge does not necessarily eliminate all currency risk. The documents also note that a financial loss could arise in the event of insolvency of the depositary or a party acting on its behalf, although fund assets are held in safekeeping and legally segregated.