WHY COHEN & STEERS

Tenured portfolio managers solely dedicated to commodities with an average 27 years of industry experience co-managing active strategies through various market environments

Proprietary data tools and deep analytics drive specialized research

Specialized resources including risk management, derivatives trading, and performance analytics as well as extensive collaboration with the other real asset investment teams

WHY ACTIVE COMMODITIES

Active management

This multi-dimensional investment process involves four core dynamic components: relative position weights, spread trades, enhanced roll yield and collateral management.

Portfolio diversification

Bottom-up analysis used to build a diversified portfolio invested across commodity sectors including energy, industrial metals, agriculture, livestock and precious metals

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Liquidity profile

Invests entirely in derivatives, primarily through the use of futures, which we believe provide liquid, direct, and inexpensive exposure to commodities markets

We believe an active, long-biased approach to commodities based on fundamental research has the potential to generate alpha while providing the diversification benefits of a commodities allocation within a broader portfolio.

The strategy employs an active, long-biased investment process based on fundamental research and seeks to outperform its benchmark over a full market cycle, achieve uncorrelated, equity-like returns, and provide portfolio diversification and mitigate the harmful impact of inflation.

FEATURED INSIGHT

Commodities’ redemption

Commodities have delivered historically strong performance, providing inflation hedging, diversification and compelling returns, with the potential to contribute meaningfully to a real assets allocation.

April 2022 | 17 mins

WHY INVEST WITH US

Delivering value to our clients

Cohen & Steers has been offering new and creative real asset and income-oriented investment solutions for both institutional and retail investors for more than 35 years. Research and active portfolio management remain the cornerstones of our investment process, backed by our commitment to deliver superior performance and to provide each client with the highest levels of service.

Commodities’ redemption
April 2022 | 17 mins
Commodities have delivered historically strong performance, providing inflation hedging, diversification and compelling returns, with the potential to contribute meaningfully to a real assets allocation.
Author Profile Picture

Ben Ross


PORTFOLIO MANAGEMENT

An experienced team

Ben Ross

Head of Commodities

29 years of experience

Nick Koutsoftas

Portfolio Manager, Commodities

28 years of experience

+2 analysts

We believe an active, long-biased approach based on fundamental research has the potential to generate alpha while providing the diversification benefits of a commodities allocation within a broader portfolio. The strategy invests entirely in derivatives, primarily through the use of futures, which we believe provide liquid, direct, and inexpensive exposure to commodities markets.

The team conducts in-depth, bottom-up analysis on commodities to build a diversified portfolio invested across commodity sectors, including energy, industrial metals, agriculture, livestock and precious metals. They analyze supply & demand fundamentals, inventory metrics, valuation, market participant composition, technical factors and the shape of the futures curve.

We complement the strength of our extensive internal research with insight provided by external industry experts and alternative data providers, who specialize in individual commodity markets. Based upon the bottom-up research, the investment team seeks to actively implement the strategy by setting relative commodity position weights, employing long/short spread trades, and actively analyzing the commodity term structure to maximize roll yield.

APPROACH

Our investment process

The strategy’s investment process is rooted in rigorous fundamental research focusing on the analysis of supply and demand balances, inventories, valuation, and other technical factors that affect price discovery for a broad universe of commodities. Based upon this bottom-up research, the team seeks to actively implement the strategy by tactically setting relative position weights, employing long/short spread trades, and optimizing contract selection and roll timing.

Investment universe
The strategy’s investment universe is comprised of approximately 30 commodities. We also follow and may invest (up to 20%) in out-of-universe commodities—if they meet specific liquidity guidelines. The investment team seeks to construct a broad, well-diversified portfolio at both the commodity and contract levels.

Fundamental research
TThis is the cornerstone of the investment process and drives portfolio construction. The investment team performs extensive research and analysis of each commodity’s supply and demand fundamentals, analyzes relevant macro and market factors and develops an informed valuation forecast.

Active management
This ongoing process involves three interconnected practices: setting relative commodity position weights, employing commodity spread trades and roll yield management.

What the energy transition means for infrastructure investing

January 2023 | 18 mins

The energy transition is providing numerous infrastructure opportunities as the world moves from hydrocarbons to renewable energy. With that said, challenges do exist, which points to the fact that renewables and conventional energy will need to work hand-in-hand on the road to Net Zero.

Closed-end fund commentary 4Q 2022

January 2023 | 3 mins

Closed-end funds tallied negative total returns during a challenging 2022 as the rising interest rate environment put pressure on most major asset groups.

Defending against sustained inflation with real assets

Defending against sustained inflation with real assets

January 2023 | 6 mins

We believe markets have transitioned to a new regime of slow growth and elevated inflationary risks. It’s an environment we believe warrants diversification and inflation mitigation. And it’s precisely the role that we feel real assets can fulfill. Watch why we think we are in a period of secular stagflation and what role real assets can play.

Institutional Investor: How the end of rate hikes could set the stage for preferred securities

January 2023 | 1 min

Preferreds have delivered double-digit returns in six out of seven years following a negative total return, according to Cohen & Steers.

Why we see favorable entry points emerging for REITs

January 2023 | 18 mins

Listed REITs have likely priced in a recession; Our analysis points to a recovery next.

What we believe investors should know about NTR redemptions

What we believe investors should know about Non-Traded REIT redemptions

December 2022 | 6 mins

Recent redemption limits placed on some notable Non-Traded REITs (NTRs) are generating headlines, but we believe there are several points investors may be missing. We do not think this reflects broad economic or systemic risk. Rather, this demonstrates how, as expected, listed real estate typically leads the private market in both selloffs and recoveries. Read why we believe recent news that NTRs limited redemptions underscores the opportunity we see in listed real estate.

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We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.