This strategy is offered by Newton Investment Management North America LLC (‘NIMNA’) in the United States. NIMNA is part of the Newton Investment Management Group.

Strategy Overview

While commodities are a proven and liquid inflation hedge, they tend to perform poorly in low and benign inflationary environments. The strategy seeks the best of both worlds by combining dynamic, net-long exposure to commodity beta with active long/short commodity positions. When inflation is low and benign, the strategy’s risk budget tilts toward a long/short investment approach. When inflation is high and rising, the strategy’s risk budget is primarily allocated to a net-long commodity exposure, augmented by a long/short relative value positions. The strategy seeks to improve performance, lower volatility, and reduce drawdowns relative to traditional commodity benchmarks, which may result in a better overall Sharpe ratio.

Strategy Profile

Benchmark

Bloomberg® Commodity Index Total Return

The Bloomberg® Commodity Index Total Return performance benchmark is used as a comparator for this strategy. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison.

Strategy inception

30 April, 2010

Investment Team

Our investment team of research analysts and portfolio managers work together across regions and sectors, helping to ensure that our investment process is highly flexible.

A team of 16 investment professionals.

Want to find out more?

Douglas Beach
Douglas Beach

Research analyst, Multi-Asset Research team

Dimitri Curtil
Dimitri Curtil

Global head of multi-asset solutions

Louis Mangini
Louis Mangini

Portfolio manager, Asset Allocation Portfolio Management team

James H Stavena
James H Stavena

Head of portfolio management, Multi-Asset Solutions

Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.