What We Do

resham offers several commodity investment programs.  Our goal is to provide a responsible way to invest (as opposed to speculate) in the asset class, and to offer our clients the benefits of systematic exposure to a wide range of commodities and commodity groups through the use of commodity futures in Diversified Commodity Portfolios (DCP).   Historically, the advantages from investing in commodity futures or DCPs have included a decrease in the volatility and a concurrent increase in the risk-adjusted returns of portfolios that included an allocation to diversified commodity investments.

Commodities are tangible assets such as Oil, Gold, and Wheat.  Like non-tangible assets (such as Stocks and Bonds), they offer the potential for investment return with associated risk.  Every year approximately $8 trillion of new commodities are produced globally, and this represents 10% of the World Wealth Portfolio.

World Wealth Portfolio (as of December 2015)

Sources: US Bonds: Liquid intermediate and long-term government and corporate bonds (Barclay’s US Aggregate and Global Aggregate indices). US and Non-US Stocks: Market value of listed equities in developed markets (S&P and Dow Jones). Non-US currencies based on M2 (IMF and Central Banks).
Commodities: Annual production in US dollars (Calculated by Gresham using pricing from Bloomberg and production information from USDA, EIA, ICCO, WBMS, GFMS, IEA, United Nations and Johnson Matthey).

Investors can gain exposure to commodities through:

Diversified Commodities Portfolios (DCPs)

Physical Commodities

Natural Resource Equities

Managed Futures funds

Commodity Indices

We believe that DCPs provide the best balance between liquidity, ease of investment, portfolio diversification, and inflation hedging.   DCPs may also enable an experienced manager to maximize the various components of total return.   Further, DCPs avoid many of the complications and risks associated with other methods of commodity investment, such as the purchase and storage of physical commodities, or the hidden costs associated with investing in vehicles that track commodity indices.

NOTE THAT, LIKE MOST INVESTMENT PRODUCTS, GRESHAM'S PROGRAMS INVOLVE RISK AND CAN RESULT IN LOSSES AS WELL AS PROFITS.  PAST PERFORMANCE RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

from NUVEEN INVESTMENTS
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