Mining Small Caps ...
AIPM JUNIOR MINING & EXPLORATION UCITS FUND is an absolute return fund that invests in small to medium sized mining companies.
The investment objective of the Oak Tree Junior Mining & Exploration Fund is to achieve substantial real-term value growth by investing worldwide in companies devoted to exploration and/or mining of precious metals and also base metals.
Indirect investments in precious metals shall be permitted to a limited extent to allow the sub-fund to participate in price movements in the aforementioned asset classes.
The assets of the sub-fund shall be invested in accordance with the principle of risk diversification primarily in equity securities of very small to medium-sized companies listed on a stock exchange (micro, small & mid caps).
These companies are located mainly in Canada, Australia and the USA but also in other promising countries. The selection of investments shall be based principally on the fundamental outlook, with particular attention being paid to the potential for prospecting success. As promising small companies are often taken over by larger enterprises, there is potential for attractive capital gains.
However, depending on its assessment of the situation on the various financial markets, the Fund Manager may also invest up to 45% of the sub-fund’s assets in liquidity and money market instruments, especially if it considers that the outlook makes investments in equities inopportune.
Units of this sub-fund should therefore be acquired only by investors who consciously decide to assume higher risks and are able to absorb substantial losses if circumstances so dictate.
The objective of the AIPM JUNIOR MINING & EXPLORATION UCITS FUND is to deliver superior returns over a time horizon of 5 to 10 years.
The managers of the fund scan the investable universe to identify promising mining and exploration companies.
Exploration and Mining companies can offer extremely high returns but are also fraught with risks.
The fund benefits of the extended experience of its management team in mining investments for over 40 years.
The managers focus on holding long term positions in mining companies with high take over potential.
Mining and exploration companies are sensitive to commodity prices as well as to the expertise of the companies' management teams and technologies.