Commodity Market Increased Slightly in March Amid Mixed Macroeconomic Indicators

News provided by

Apr 10, 2013, 09:10 ET

NEW YORK, April 10, 2013 /PRNewswire/ -- Commodities were slightly higher in March despite uncertainty stemming from the Eurozone.

Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management business, said, "The market's focus has been on risks stemming from Europe along with emerging market demand concerns. The US equity market has largely bucked these concerns and continued to move higher, choosing to focus on encouraging domestic signs. US consumer confidence continued to recover, with the March reading near its highest level since 2007. The housing recovery continued to gain steam, with home prices higher for much of the country. However, commodities have been more sanguine, keeping with the broader global theme of higher risk aversion based on macroeconomic concerns."

(Logo: http://photos.prnewswire.com/prnh/20091204/CSLOGO)

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, "Events in the Eurozone as well as fluctuations in global growth expectations will continue to play a role in commodity market movements. However, we remain concerned with the long-term implications of ongoing monetary stimulus and its potential impact on unexpected inflation risk."

The Dow Jones-UBS Commodity Index Total Return increased 0.67% in March. Overall, 10 out of 22 index constituents posted positive returns. Energy was the best performing sector, up 6.29%, led by Natural Gas on the back of continued larger-than-consensus storage withdrawals. Weather forecasts remained colder than normal, supporting heating demand. Precious Metals increased 0.63%. The uncertainty of Cyprus solidifying a bailout deal with the European Central Bank led investors to look to Gold as a safe haven, though it also led to a higher US dollar. Industrial Metals was the worst performing sector, down 4.53%, as events in Europe set the tone for base metals over the course of the month. Caution emerged over a possible bank run in Cyprus which weighed on the sector, as did speculation over weaker Chinese demand. Agriculture decreased 2.43% following the release of the USDA Grain Stocks report on March 28^th, which featured inventories at or above the high end of consensus expectations for corn, soybeans and wheat. Livestock was relatively unchanged, down 0.31%, due to mixed returns from sector components. Live Cattle declined due to lower export expectations after Russia implemented a ban on US beef exports. Corn trading limit down at the end of the month also aided Live Cattle, as cheaper corn may reduce the near term supply of cattle.

About the Credit Suisse Total Commodity Return Strategy
Credit Suisse's Total Commodity Return Strategy has been managed for 18 years and seeks to outperform the return of a commodities index, such as the Dow Jones–UBS Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

Spot Return: price return on specified commodity futures contracts;
Roll Yield: impact due to migration of futures positions from near to far contracts; and
Collateral Yield: return earned on collateral for the futures.

As of March 31^st, 2013 the team managed approximately USD 11.3 billion in assets globally.

Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 47,400 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management
In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse's Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse's Asset Management business is operated as a globally integrated network to deliver the bank's best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

Important Legal Information
This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes "Forward-Looking Statements" (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "target", "project", "estimate", "intend", "continue" or "believe", or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments: Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative's original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor's portfolio management strategy.

SOURCE Credit Suisse AG