Commodities have long since established themselves alongside traditional asset classes such as stocks and bonds. They offer investors the opportunity to achieve equity-like returns and are also suitable for strategic portfolio diversification.
Since the early nineties, the two major avenues available for investing in commodities have been:
-
traditional indices, with a focus on front-month futures contracts
-
baskets of commodity
futures contracts, positioned further back on the time axis
Both strategies functioned well for some years. However, major commodity indices have recently run up against their structural limits, and this has resulted in lower returns.
More information can be found in the area for
institutional investors.
The UBS Bloomberg CMCI goes down a new route.
The CMCI applies a totally new methodology, which will enable you to both minimize the effects that lead to lower returns, and diversify your commodity investments along the time line.
You can find more detail about the constant maturity process in the methodology section.