Diversity in adversity

Investors looking for portfolio diversification are turning to commodities and managed futures indexes. But not all are created equal. Keith Brody reports

Investors are increasingly turning to commodities for portfolio diversificationand as a defensive exposure to offset bearish trends in equities. Index providersare responding with products that allow investors to benchmark the performanceof their commodity exposures. In some cases the indexes are themselves investable.

Kevin Rodgers, London-based managing director of commodity correlation tradingat Deutsche Bank, says investors are unlikely to look back. “The sustainedshock caused by the crash