Pathfinder looks for beta times
Paul Brownsey, Pathfinder Asset Management executive director, said he and co-founder, John Berry, aimed to offer New Zealand investors access to previously hard-to-access international asset classes.
Brownsey said the boutique firm would launch a range of “smart beta” funds that track “intelligent benchmarks” in a transparent, cost-effective and tax-efficient way.
Pathfinder's first product, which launched this month, is a commodities fund that tracks the 'Deutsche Bank Liquid Commodity Index – Mean Reversion Plus Access'. Essentially, the Deutsche index follows a basket of six commodities – corn, wheat, gold, heating oil, aluminum and light crude – with daily weightings adjusted in line with historical pricing trends.
The Deutsche benchmark is also moderated monthly by a changing allocation to cash that is designed to cushion the effects of longer-term commodity cycles by “differentiating between short-term price moves and long-term trends”, the Pathfinder Commodity Fund investment statement says.
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