Bringing you live news and features since 2006 

Salus Alpha launches commodity arbitrage fund


Salus Alpha has launched a commodity arbitrage fund which aims to take advantage of the difference between the S&P GSCI Total Return index and the S&P GSCI Spot Index.

As of 13 November 2009, the Total Return Index had a year-to-date performance of 10.16 per cent, while the Spot Index had a performance of 43.78 per cent – a difference of nearly 34 per cent.

According to Salus Alpha, investors hoping for 43 per cent but only earning ten per cent would have had a chance on a 34 per cent return with an investment in the Salus Alpha Commodity Arbitrage.
The investment approach of the fund enables investors to obtain returns from both Backwardation (the expiring futures contract is more expensive as the next delivery month) and Contango. The strategy commodity arbitrage tries to profit from price differences on various commodity markets or between related commodities.
The fund also employs seasonal strategies. Seasonality signifies price inefficiencies arising where a commodity experiences increased demand for production purposes at certain times of the year, and decreased demand at other times. Energy products, for example, experience higher demand in winter (for heating) and in summer (for cooling) than in spring and autumn. These imbalances produce arbitrage opportunities that the fund tries to exploit.
Salus Alpha Commodity Arbitrage invests indirectly into commodities via index derivatives such as swaps and futures. The fund’s portfolio consists of financial indices such as the CAX – Commodity Arbitrage Index listed on the Vienna stock exchange. The index was launched by Alternative-Index, a member of the Salus Alpha Group.
The subscription period for the Salus Alpha Commodity Arbitrage is from 17 to 30 November 2009.

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by