GAM KCL Trade Finance AU Fund

GAM Investments has launched a commodity trade finance fund called the KCL Trade Finance AU Fund.

The fund is targeting gross returns of 9-11 per cent per annum through secured lending to small and medium-sized enterprises (SMEs) globally, via investment along the commodity supply chain. Loans are usually secured against the underlying commodity.

The fund invests via GAM Kimura Commodity Trade Finance Fund, which is managed by commodity trade finance firm Kimura Capital LLP.

GAM says their investment team focuses on borrowers in first world countries, while transactions are usually secured against underlying commodities skewed toward Asia, Africa and South America.

The fund has management fees of 1.5 per cent for the wholesale share class and 1.15 per cent for the institutional share class. There is a performance fee of 15 per cent over the high water mark for the wholesale share class and 10 per cent over the high water mark for the institutional share class.