Commodity Market Increased Slightly in March Due to Encouraging Supply Fundamentals

le
0

Commodities increased slightly in March as positive fundamentals and heightened macroeconomic risk supported returns.

Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management business, said, "Commodities were driven largely by fundamental factors in March, and returns were generally uncorrelated with other asset classes. The key themes continued over from January and February, and were largely related to one-off event-driven risks which negatively impacted supplies. While weather risks seem to be subsiding in North America with the end of the winter season, the risk of further extreme climate events in South America and other parts of the world are still possible. In addition, heightened macroeconomic risk in Ukraine, and in other developing countries, most notably China, may continue to impact economically sensitive commodities."

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "In the US, monetary policy is expected to finally be on the path towards normalization. Federal Reserve Chair Yellen has begun her tenure by indicating quantitative easing was nearing its end and surprised many by indicating rates may be raised shortly thereafter. As monetary policy and economic conditions normalize, we expect correlations between commodities and traditional asset classes to continue to decrease. As a result, we believe investors will continue to benefit from the diversification benefits commodities offer as part of a portfolio."

The Dow Jones-UBS Commodity Index Total Return increased 0.41% in March. Overall, 10 out of 22 index constituents posted positive returns. Agriculture was the best performing sector, up 4.97%. In addition to Wheat, Corn ended the month higher as the USDA lowered its expectations for ending inventory amid strong demand. Soybeans also increased on continued strong US exports and very tight inventory levels. Livestock increased 4.38%, led by Lean Hogs. Industrial Metals declined 1.56%. China saw its first ever domestic corporate bond default, adding to existing concerns over the government's seeming desire to tighten credit conditions. Energy decreased 1.77%, led lower by Natural Gas, as apprehension over winter supplies eased. Forecasts shifted to expectations for milder weather in the near term outlook, which would curb heating demand. Precious Metals declined the most, down 3.97%, led lower by Silver. Gold also declined due to concerns over physical demand out of China and India, as well as continued selling following the more hawkish-than-expected March FOMC meeting communication.


About the Credit Suisse Total Commodity Return Strategy
Credit Suisse's Total Commodity Return Strategy has been managed for over 19 years and seeks to outperform the return of a commodities index, such as the Dow Jones-UBS Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:
? Spot Return: price return on specified commodity futures contracts;
? Roll Yield: impact due to migration of futures positions from near to far contracts; and
? Collateral Yield: return earned on collateral for the futures.

As of March 31, 2014, the Team managed approximately USD 11.7 billion in assets globally.


Press Contact
Perrin Wheeler, Corporate Communications, tel. 212 325 8978, perrin.wheeler@credit-suisse.com


Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,000 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management
In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse's Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse's Asset Management business is operated as a globally integrated network to deliver the bank's best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.


Important Legal Information
This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.
Certain information contained in this document constitutes "Forward-Looking Statements" (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "target", "project", "estimate", "intend", "continue" or "believe", or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments: Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative's original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor's portfolio management strategy.

Vous devez être membre pour ajouter des commentaires.
Devenez membre, ou connectez-vous.
Aucun commentaire n'est disponible pour l'instant