The fund's assets are invested in over 100 individual listed commodity companies. But the 35 largest positions account for 75% of the total invested capital. We see the other, relatively small, positions as 'toes in the water', Relatively small amounts invested in exploration companies so that we can closely follow the development of their exploration program.
Geographically, there is a strong emphasis on relatively safe countries such as Canada, America and Australia. But we also have substantial investments in Latin America and Africa. Especially in these countries we see many new (gold) discoveries.
If we look at the distribution per metal, it becomes clear that more than 50% of the investments are gold-related. These are companies that are active in finding (exploration) or producing (exploitation) the precious metals. The base metals positions include copper, nickel and zinc. Uranium positions are also well represented. In addition, ETFs are used to take positions in sectors that have just a few listed companies.
About one-third of our portfolio consists of investments in the exploration sector, 15% in developers, and the rest is invested in ETFs, (start-up) producers, and the so-called Royalty/Streaming companies. The latter are entitled to part of the proceeds in exchange for co-financing the new mine.
NB: A lot of investments are made in so-called Private Placements, whereby larger packages of shares are bought at favorable conditions. The attractive thing about this is that there are also free warrants that give us the right to buy additional shares at an attractive price. Each year, this direct investment yields a return of approximately 15%. It is not possible for most retail investors to participate in this type of investment. By participating in our fund, this market becomes indirectly nonetheless accessible.