ZSC Profile
The USCF Sustainable Commodity Strategy Fund aims to offer investors broad exposure to commodities with a focus on sustainability through three key themes: agriculture, renewable energy, and electrification. The fund advisor employs a strategic approach by investing predominantly in derivatives instruments, such as futures and options, that are linked to commodities, as well as equity securities tied to these commodities. This method allows the fund to capture a diverse range of sustainable investment opportunities within the commodities sector.
To align with its sustainability objectives, the fund allocates its investments equally among the three identified themes. In the agriculture sector, the fund targets commodities and companies involved in sustainable farming practices and crop production. Renewable energy investments include commodities and companies engaged in the production and use of clean energy sources such as wind, solar, and bioenergy. Electrification focuses on commodities and technologies related to the transition towards electric power and energy storage solutions.
The fund's investment strategy involves significant use of derivative instruments to gain exposure to commodity prices and related equity securities. These derivatives may include futures contracts, options, and swaps, which are designed to provide targeted exposure to the desired sustainability themes. Additionally, the fund may invest in equity securities of companies that have substantial economic ties to the underlying commodities, further enhancing its thematic exposure.
As a non-diversified fund, the USCF Sustainable Commodity Strategy Fund concentrates its investments across its chosen sustainability themes, reflecting a commitment to targeted areas of growth and innovation within the commodities sector. This focused approach allows the fund to capitalize on emerging trends in sustainability while providing investors with a structured vehicle to invest in the evolving landscape of sustainable commodities.
|
