CIO Active Commodity Strategy

UBS maintains a constructive outlook on commodities, citing structural demand and supply constraints, while transitioning to an active investment approach to optimize risk-adjusted returns.

Key Takeaways

• 1.Commodities offer strong diversification and are supported by structural underinvestment and energy transition efforts.
• 2.The CIO strategy recommends an active approach: dynamic exposure management, sector rotation, and enhanced collateral management.
• 3.Precious metals rating downgraded to moderately overweight due to opportunity cost concerns from US yields and USD strength.

Table of Contents

• CIO Active Commodity Strategy
• Dynamic exposure management
• Active sector rotation
• Enhanced collateral portfolio
• Current allocation of the CIO Active Commodity Strategy
• Overall commodity stance
• Sector stance
• Collateral stance
• Global asset class preferences definitions
• Appendix

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