The objective of the Opus Commodities Core Plus Fund (OCC+) is to provide active long commodity exposure with a combined objective of 6-9% annual benchmark out-performance and a low tracking error. The OCC+ Fund is benchmarked against the Dow Jones-UBS Commodities Total Return Index. The OCC+ Fund is an active multi-manager portfolio which is constructed sequentially from three commodity investment categories in order to maximize diversification, and to provide opportunities to capture performance in commodities markets. These are: 1. Commodities Hedge Funds adopt commodities trading strategies involving both relative value and directional trades in both commodities and commodities equity markets. They are a source of alpha and may have varying beta, but generally the selection of long biased funds will contribute to net long market exposure.
2. Commodities Long Funds offer discretionary portfolios of long commodity risks built on the basis of fundamental and quantitative models. They are the main source of market exposure in the portfolio and contribute moderate alpha. 3. Commodities Enhanced Index Products are commodities related structured notes and commodity ETFs. These investments contribute to ensuring that OCC+ has a balanced rolling net market exposure of 100% and a low Tracking Error vis-a-vis its benchmark. These will have a variable market exposure and contribute incremental alpha.