Credit Suisse Commodity Return Strategy
Commodity demand in the West is subject to ups and downs. As industrial production flags, energy commodities like oil and raw materials like copper aren’t needed as much. However, the emergence of the BRIC countries has baked in significant organic growth for commodities as regions like Latin America, India and China have undergone aggressive industrialization.
One way to play this trend is with the Credit Suisse Commodity Return Strategy Fund (MUTF:CRSOX), which does not invest in stocks. Rather, it focuses on futures, which are complex contracts that allow investors to bet on the direction of the prices on individual commodities.
If you don’t feel comfortable picking which commodities will rise and which will fall, trust Credit Suisse Commodity Return Strategy to do the picking for you. CRSOX has a comprehensive approach, with exposure to categories including agriculture, energy, industrial metals, precious metals and livestock.
What’s more, the fund has a reasonable expense ratio of 0.79%. The performance can be volatile; however, over the past year CRSOX is off more than 16%. But in the past three years, the fund has managed a nearly 10% average annual return.
With $5.7 billion under management, CRSOX is closed right now to new investors, but that could change if conditions in the market improve.
Jeff Reeves is the editor of InvestorPlace.com, and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace??.com or follow him on Twitter via @JeffReevesIP. As of this writing, Jeff Reeves did not own a position in any of the investments named here.