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Institutional Spotlight
April 2018

Commodities in a portfolio context


This issue marks the launch of our new “Institutional Spotlight” publication, which is specifically designed for institutional investors and will provide you with our timely insights on relevant topics on a quarterly basis.
In this first edition we focus on commodities; although the performance of this asset class has been disappointing in recent years, we see fundamental reasons why it should not be overlooked and actually deserves to be in the spotlight.
  • Compared to the more traditional asset classes of equities and bonds, commodities not only constitute a good option for portfolio diversification, but also display a positive correlation with inflation.
  • As such, they offer a potentially attractive opportunity for investors who expect inflation to rise. Moreover, the asset class currently seems very favourably valued relative to equities on a historical basis.
  • Commodities may therefore represent an interesting option in an environment of persistently high equity valuations and rising inflation.
We hope you will enjoy our insights on this topic and look forward to further expanding this interesting conversation with you.

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