Market Access Rogers International Commodity Index UCITS ETF

Issuer: M&G

Asset Class: Commodity

TER: 60bps

Trading Currency: GBP

Pays Income: False

Listing Date: 16 Apr 2020

Ticker: RICI

ISIN: LU0249326488

This fund offers investors a straightforward way to gain broad exposure to the global commodities market. It aims to replicate the performance of the Rogers International Commodity Index, a benchmark designed by renowned investor Jim Rogers. This index provides a diversified basket of real assets, spanning the entire commodity spectrum, including energy, agriculture, and metals. By tracking a wide array of 38 different commodity futures contracts, the fund helps to mitigate the risks associated with investing in a single commodity, providing a more balanced representation of the raw materials that drive the world's economy.

Investing in a diversified commodity basket can serve several strategic purposes within a portfolio. Commodities often exhibit a low correlation to traditional asset classes like stocks and bonds, making them an effective tool for diversification and potentially reducing overall portfolio volatility. Furthermore, hard assets can act as a natural hedge against inflation, as their prices tend to rise during periods of increasing price levels. This exposure allows investors to participate in global growth trends, as demand for raw materials is closely linked to industrial activity and economic expansion, particularly in emerging markets.

This product is suitable for investors seeking to diversify their holdings beyond equities and fixed income, hedge against inflationary pressures, or capitalize on the long-term demand for natural resources. By utilizing a swap-based structure, the fund efficiently tracks its underlying index without the complexities of directly managing physical commodities or futures contracts. It provides a liquid and accessible vehicle for those looking to add a strategic allocation to the essential building blocks of the global economy.