Strategy Description
Exposure to commodities allows investors to take advantage of 4 key global trends:
- Sustainability the move to carbon neutrality requires more copper, iron ore, silver, nickel, cobalt, aluminum, etc. This is positive for industrial metals and provides a long-term tailwind
- Infrastructure the US needs to upgrade infrastructure and China has not developed many parts of the interior. Commodities are required for both countries’ growth / infrastructure plans.
- Supply producers have carefully managed capex to improve bottom lines and ESG scores, as well as to prepare for a fossil-free world. This limited supply cannot be resolved overnight.
- Inflation & USD weakness since commodities are finite and priced in USD, their inclusion in portfolios can improve returns in a world of monetary supply expansion and potential inflation.
This strategy invests across the commodity spectrum – precious and industrial metals, agriculture commodities and energy markets. Can be run with or without cryptocurrency exposure, which adds another dimension of diversification and exposure to a potential new asset class.
Daily transparency and liquidity; implementation is via low-cost ETFs to minimize costs.
For U.S. investors, available in a Tax-Aware approach.
