In the news release, April Sees Fundamental Factors Drive
Commodity Markets Higher, issued May 12,
2015 by Credit Suisse AG over PR Newswire, we are advised by
the company that the 2nd paragraph, first sentence, should read
"The Bloomberg Commodity Index Total Return performance was
positive for the month, with 14 out of 22 Index constituents
trading higher." rather than "The Bloomberg Commodity Index Total
Return performance was negative for the month, with 14 out of 22
Index constituents trading higher." as originally issued
inadvertently. The complete, corrected release follows:
April Sees Fundamental Factors Drive Commodity Markets Higher
NEW YORK ,
May 12, 2015
/PRNewswire/ -- Commodities were higher in
April, largely driven by fundamental factors within the Energy
Sector, according to Credit Suisse Asset Management.
The Bloomberg Commodity Index Total Return performance was
positive for the month, with 14 out of 22 Index constituents
trading higher.
Credit Suisse Asset Management observed the following:
- Energy was the best performing sector, up 13.84%, with all
constituents posting gains. Crude oil and petroleum products led
the sector higher amid reports of declining US production and
inventories, while demand continued to be strong.
- Industrial Metals increased 7.81%, led by Zinc. Positive new
home and construction data was reported out of China, increasing expectations for a recovery
in base metals demand.
- Livestock ended the period 1.73% higher, led by Lean Hogs.
Exports were up sharply for the year through April 23rd compared to the same period
last year.
- Precious Metals was the worst performing sector, down 0.84%.
Silver led the sector lower as investment demand continued to be
weak. While U.S. economic data was mixed, expectations were that it
was still good enough for the Federal Reserve to consider
tightening monetary policy sooner rather than later.
- Agriculture decreased 0.52%, led lower by Wheat. Forecasts of
continued rainfall in the U.S. Southern Plains alleviated
expectations of damaged crops caused by unfavorable dry weather
conditions earlier in the year, and increased yield
expectations.
Nelson Louie, Global Head of
Commodities for Credit Suisse Asset Management, said: "April was
generally a strong month for Commodities, with the main focus on
the Energy sector, as the sharp drop in rig counts and cutbacks in
capital expenditures may start to provide support to the market. In
addition, changes in Cabinet members in Saudi Arabia and geopolitical concerns in the
Middle East increased uncertainty
over the region's future oil production. In the US, as the summer
growing season approaches, weather forecasts will increasingly play
a bigger role in driving returns in the Agriculture sector. "
Christopher Burton, Senior
Portfolio Manager for the Credit Suisse Total Commodity Return
Strategy, added, "At a macroeconomic level, signs of manufacturing
activity in China were mixed, with
PMI data hovering between expansion and contraction. However, the
latest data exceeded expectations, suggesting government stimulus
efforts may be working. The latest European PMI data indicated
stronger levels of expansion, which may increase demand
expectations for base metals. Uncertainty remains high regarding
the impacts of divergent central bank policy, leading to increased
levels of volatility across multiple asset classes. These risks,
along with the elevated potential of inflation overshooting
expectations, highlight the importance of having a diversified
portfolio."
About the Credit Suisse Total Commodity Return
Strategy
Credit Suisse's Total Commodity Return Strategy has been managed
for over 28 years and seeks to outperform the return of a
commodities index, such as the Bloomberg 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 April 30, 2015, the Team
managed approximately USD 11.0
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 46,000 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.
Copyright © 2015, CREDIT SUISSE GROUP AG and/or its
affiliates. All rights reserved.
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SOURCE Credit Suisse AG