Demand for active strategies and sector cherry-picking set to remain strong in commodities

Volatile commodity markets are boosting the use of dynamic and active strategies to access the asset class, with a greater emphasis on direct exposure to particular sectors and underlying selection

Commodity investors favouring more active strategies

Sophisticated commodity investors are taking more active positions that involve the careful selection of sectors or underlyings, amid increased interest in dynamic strategies that provide exposure to commodities while limiting risk.

"Investors don't just want pure beta exposure, they want a risk-control version of the beta exposure, and while these types of strategy will never be perfect because volatility is always backward-looking to a certain extent, over the long-term they can give you