Updated: May 18, 2021
Dynamic Risk-Overlays for Commodity Investments
Commodities are an important asset class and, in many cases, a relevant component within investor portfolios.
However, due to the highly volatile nature of this asset class, the portfolio integration of unmanaged commodities with traditional approaches can be a challenge.
In this paper, we suggest considering commodities in combination with a dynamic risk overlay, which improves the risk/return profiles significantly.
Therefore, we introduce: “Managed Commodities”