Commodities: A slippery year

For good reasons, commodities have been an unloved asset class this year, significantly underperforming both equity and fixed income markets. While the longer-term fundamentals remain weak across the broad market, the commodity sector still represents an important component of a multi-asset class portfolio, offering investors an alternative return path and the benefits of diversification. The 'financialisation' of commodities over the last 15 years has brought easier access to this market. Institutional and retail investors can now participate in a broad range of product offerings, mostl...