Chimaera launches Aussie mining EFT on ASX
The Digga Australian Mining Fund, an exchange traded fund that follows a portfolio of Australian metals and bulk commodities companies, has been launched on the ASX. It tracks the Chimaera Australian Mining Index and focuses on small to mid-tier miners.
The Digga fund will follow companies such as Atlas Iron, whose workers are shown operating a drill rig.
The EFT excludes global diversified miners to focus solely on about 70 of the largest publicly traded companies, including Iluka, Lynas, Paladin, Atlas Iron, Sandfire and Oz Minerals.
Portfolio manager Andrew Kemp says that while the Chimaera Index fell 36.6% in 2011, this figure significantly underperforms the commodity prices that the EFT’s constituent companies produce.
“We continue to be encouraged by the building economic momentum in the US, and the recent stabilisation seen in Chinese data. For 2012 we expect decent markets return, although uncertainty over Europe will keep volatility levels elevated.”
Chimaera says the Digga fund is Australia’s first pure play metals and bulk commodities EFT. Gold and precious metals miners and explorers are not included in the EFT.
Foreign investment and ownership is on the increase, as Asian companies look to secure commodity supply by acquiring Australian miners.
Investing in the Digga EFT offers an exposure to the latter sector, which can be difficult to access and research on a single stock basis, Chimaera said.
Contact: www.chimaeracapital.com
