Commodity investment is often lumped together into one catch-all asset class for ease of portfolio management.
However, underlying this catch-all term is a disparate variety of commodities, from oil to orange juice, pork bellies to platinum.
All have differing risk and return characteristics, and all can play a different role as part of a diversified portfolio.
So how should investors go about getting exposure to commodities? Should they opt for pure-play investments, such as physical gold bullion, either as a hedge against global market downfalls or as a potential long-term investment?
Or should investors be considering investing in commodity-related stocks and shares, such as investments in mining companies or physical-backed exchange-traded commodity funds?
Talking Point, in association with Schroders, looks at the the various drivers behind the performance of various commodities within a wider portfolio, as well as assessing the potential risks, such as inflation, illiquidity and long periods of underperformance relative to equity markets.
The report, which can be read by clicking the link in the image above, qualifies for an indicative 30 minutes’ worth of CPD.