NEW YORK, March 8, 2016 /PRNewswire/ -- Commodities decreased in February, largely driven by supply surpluses, according to Credit Suisse Asset Management.
The Bloomberg Commodity Index Total Return performance was negative for the month, with 14 out of 22 Index constituents yielding losses.
Credit Suisse Asset Management observed the following:
Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said: "Supply concerns in crude oil and petroleum products continued to persist throughout the month. Despite current high levels of inventories, expectations increased that the market will be better balanced between supply and demand going forward. Throughout the first two months of the year, many leading U.S. oil exploration companies and producers continued to announce significant capital expenditure cuts alongside other measures. Elsewhere, discussions between Saudi Arabia, other OPEC members, and Russia ended with agreement to maintain production at current levels. The gesture will have little immediate impact given that it was preliminary and unbinding and as the countries involved are already producing at high capacity levels. However, the willingness of these countries to come together to even discuss possible output cuts may potentially open up avenues for more concrete reductions in the near future."
Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "Ahead of the recent Shanghai G-20 meeting, the governor of the People's Bank of China reiterated the scope of its monetary policy stance, citing further room to implement monetary tools and currency measures if necessary. Global central banks in Europe and Asia have also confirmed their commitment to utilizing the policy measures necessary to revive growth in their economies, which may support global commodities demand. U.S. inflation expectations declined to very low levels alongside the rise in global inventories. The Federal Reserve may remain on a slow tightening course if weak economic data continues to increase U.S. economic growth concerns. Amid loosening monetary policy measures worldwide, exposure to commodities as an asset class may help to reduce overall portfolio risk in the event of any unforeseen increase in inflation."
About the Credit Suisse Total Commodity Return Strategy
Credit Suisse's Total Commodity Return Strategy is managed by a team with over 28 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg 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:
As of February 29, 2016, the Team managed approximately USD 7.3 billion in assets globally.
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.
Copyright © 2016, CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
Logo - http://photos.prnewswire.com/prnh/20091204/CSLOGO
SOURCE Credit Suisse AG
Share this article