Multi-asset managers turn to passives for commodity exposure as underweight active managers get left behind

Commodities entered bull market territory

Natalie Kenway
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Multi-asset managers turn to passives for commodity exposure as underweight active managers get left behind

Multi-managers hoping to take advantage of the recent commodities bull run and rebuild their exposure have been forced to allocate to passive vehicles, as many active equity fund managers are holding "material underweights" to the unloved energy and mining sectors.

The Bloomberg Commodity index, which tracks returns from 22 raw materials, recorded a 21% gain over the six months since the lows of January, when concerns about China's slowdown weighed heavily on the...

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