Our approach to commodities
Commodities are an important asset class characterized by low or, in some cases, negative correlation to other asset classes, inflation protection and strong returns. As such, they offer significant diversification benefits when combined with traditional investments.
Since energy, food and transportation make up a significant proportion of U.S. and European consumer price indexes, owning a diversified portfolio of commodities is a natural way to hedge against inflation risk.
Our commodity strategies are customized and actively managed for each commodity using our quantitative SmartRollsm process to more optimally identify investments in futures markets, and leveraging our access to the global resources of J.P. Morgan and the insights of specialized sector analysts.