BNP Paribas’ commodity fund range aims to offer beta and alpha investment opportunities in the Commodities asset class.
We particularly aim to exploit the specificities of the commodities market to reduce or capture the carry costs associated with commodity futures rolling, thanks to optimal investments on the forward curves.
The eligible universe of our solutions covers Energy, Base Metals and Precious Metals.
These investment solutions offer significant diversification and can prove to substantially enhance risk/return profiles in a portfolio context.
Energy & Metals Enhanced Roll ETF
The BNP Paribas Easy Energy & Metals Enhanced Roll UCITS ETF aims to replicate the performance of the BNP Paribas Energy & Metals Enhanced Roll TR Index. As well, to maintain the Tracking Error between the sub-fund and the index below 1%. The index offers investors a long, static exposure to the commodity market (ex-Agriculture and Livestock).
- Diversified allocation to the Commodities universe of the Bloomberg Commodity ex-Agriculture and Livestock Capped Index. In addition, the Fund rebalances the weights to those of this benchmark index once a month.
- Optimal investment on the forward curve thanks to the S&P GSCI® Dynamic Roll methodology. Our selection aims at reducing the carry costs associated with long commodity futures positions.
The Alpha Commodity fund objective is to generate absolute performance thanks to a synthetic exposure to a portfolio of quantitative strategies. In conclusion, the Fund aims at benefiting from key Commodity market’s specificities.
- Access, on a pure-Alpha basis, to similar Commodity Alpha sources as the ones used by our flagship in-house commodity strategy, BNP Paribas® Oscillator Commodity strategy (live since October 2007). Additional source of Alpha: backwardation.
- Non directional, market-neutral portfolio of non directional, market-neutral underlying quantitative strategies. As a result, the contributors are broadly uncorrelated with each other in order to benefit from diversification.
- A dynamic and risk-balanced allocation as well.
- At last, the funds aims at delivering a level of volatility ranging from 3% to 6%.
Raw Materials Income
The THEAM Quant Raw Materials Income fund aims to generate a sustained income over the medium term.
- Access to the Commodity Curve Alpha source that was implemented in our flagship in-house commodity strategy, BNP Paribas® Oscillator Commodity strategy (live since October 2007).
- Commodity Curve Alpha: created through an optimal investment on the forward curve using the S&P GSCI® Dynamic Roll mono-indices.
- Diversified allocation among 9 Commodities within an ex-agriculture and livestock broad commodity universe.
For more details, please check the product page which is accessible through the table at the bottom of this page.