Auspice Broad Commodity Excess Return Index (ABCERI)
The ABCERI gained 1.27% in April as most commodities pressed higher. While a number of the drivers have subsided (including the recent geo-political tensions, bitter cold, and drought concerns) there is renewed volatility that is beneficial to price movements.
The commodity sector continues to build a base for possible recovery after falling out of favour for a number of years. Asset class rotation continues to be a dominating theme and adding exposure to specific commodities is occurring. Renewed investor interest in this asset class appears to be growing and the performance from traditional asset classes has provided a spring board for this opportunity.