Institutional Investing in Commodities
Commodities can serve an important role in a multi-asset institutional portfolio, both strategically and tactically, as a return enhancer.
Institutional investors have been increasing their allocations to real assets, and we recently highlighted the diversity of those assets as it relates to their sensitivities to various economic and financial-market factors. We’ve now extended our analysis to real asset portfolios, noting that portfolios with similar asset class allocations may have different macroeconomic and market sensitivities. Using our RASA framework, investors can identify real asset funds and construct real asset portfolios that are better aligned to their investment objectives.