Institutional investors

Active Commodity Investing September 2009 Lee Kayser Research Analyst As the interest in commodities continues to gain momentum across the global investment community, investors are seeking to understand the options and the rationale for including commodities exposure in their portfolios. Investors are drawn, in particular, to portfolios of collateralized commodity futures (CCFs), due to the returns experienced, historical diversification to equities and bonds and potential for inflation protection over long periods of time. In this primer on collateralized commodity futures, Lee Kayser provides an explanation of: Commodities futures contracts Sources of return on CCF investments The diversification benefits CCF investments offer when added to a portfolio of traditional equity and fixed income securities The relationship with inflation Actively managed and passively managed CCFs Risks associated with investments in CCFs Request this research A note about our research Our proprietary research is made available to our institutional clients, and many of these published papers are available to other institutional investors as well. If you are not a Russell client, but are an institutional investor, we welcome you to request this research piece. We only require your contact information on a short request form. For more information about our research, please contact David or Gerry:     West Coast David Rothenberg Managing Director 866-926-5934 East Coast Gerry Lillis Director 866-459-4128 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. Date of first use: September 2009 USI-4982			Request this research Printer friendly version of this page