Our team stays abreast of market trends, diligently working to develop innovative solutions to meet new investment objectives. We have developed a number of investment strategies that each utilise our proprietary approach which combines the benefits of transparency, liquidity and risk reduction while providing additional sources of return beyond the commodity beta offered by traditional commodity indices.
The Commodity Solutions Group offers investors access to another facet of the investment management universe, providing a broad range of customised synthetic products. Our structured product solutions include, but are not limited to, full or partial index replication, total return swaps, over-the-counter options, contracts for differences (CFDs) and structured notes.
Today, investors are increasingly seeking portfolio diversification, new sources of return and inflation protection. An investment in commodities may offer the following benefits:
- Diversification—Due to historically low or negative correlation with traditional asset classes, this asset class serves as a portfolio diversifier.
- Favourable volatility and returns—Commodity indices have been found to exhibit volatility and returns similar to those of equity indices.
- Hedging benefits—Commodities have historically exhibited viable inflation-hedging characteristics.
- Reduced liquidity and transparency obstacles—When investors gain exposure to the commodity markets via exchange-traded futures, they seldom face the obstacles of poor liquidity or lack of transparency.
- Commodities have a long-term positive outlook—As the emerging world continues to grow and evolve, commodity demands remain strong and are expected to grow.
