Commodity strategies

Commodity strategies – long only and long/short

The investment objective of the long-only variation is to generate the highest possible yield and outperform the Bloomberg Commodity ex-Agriculture benchmark index. Investments are made in forward curves, which are aggregated by way of a swap in the company's own LBBW TOP-10-Commodities-Index.

The investment universe for this index consists of 15 commodities from the three sectors of precious metals (gold, silver and platinum), energy (gasoline, natural gas, heating oil, Brent oil, WTI oil and gas oil) and industrial metals (aluminium, copper, nickel, zinc, lead and tin).

LBBW TOP-10-Commodities-Index consists of futures contracts of the ten commodities with the strongest backwardation. If no or too few commodities are in a backwardation scenario, the commodities with the weakest contango are chosen. To ensure a balanced fund composition, upper and lower limits are defined for each sector. The commodities selected are reviewed every three months, swapped out if necessary, and given an initial weighting of ten percent each.

The investment objective of the long/short variation focuses on achieving a solid return but without a benchmark index. In weak phases, the fund should see less significant drawdowns than with the more offensive-natured long-only variations. In this variation as well, the index consists of 15 commodities from the three sectors of precious metals (gold, silver and platinum), energy (gasoline, natural gas, heating oil, Brent oil, WTI oil and gas oil) and industrial metals (aluminium, copper, nickel, zinc, lead and tin).

The commodities are reviewed quarterly, swapped out if necessary, and given a weighting of ten percent each. The index consists of five long and five short positions: five commodities with an attractive forward curve are purchased and five with an unattractive forward curve are sold.

Fund Profile LBBW Rohstoffe 1
Fund Profile LBBW Rohstoffe 2 LS