L&G MARKET NEUTRAL COMMODITIES USD ACC

Issuer: L&G ETFs

Asset Class: Alternative

TER: 29

Trading Currency: USD

Pays Income: False

Listing Date: 15 Jan 2026

Ticker: COMN

ISIN: IE000IIHLZL0

This actively managed fund offers a distinct approach to the commodities market by employing a market-neutral strategy. Its primary objective is to generate positive returns irrespective of the overall direction of commodity prices. Instead of taking simple long positions, it aims to capture returns from the structural characteristic of commodity futures markets known as 'backwardation,' where futures contracts with nearer expiration dates trade at a higher price than those with later expiration dates. By isolating this specific source of return, the fund seeks to provide a performance profile with a low correlation to traditional asset classes like equities and bonds, as well as broad commodity indices, making it a potentially powerful diversification tool within a portfolio.

The investment strategy is systematically implemented by taking long positions in shorter-dated commodity futures while simultaneously establishing short positions in longer-dated futures for the same underlying commodity. This structure is specifically designed to profit from the 'roll yield' generated when a backwardated market structure is present. The portfolio is diversified across various commodity sectors, including energy, agriculture, and metals, to mitigate concentration risk and capture opportunities across different market segments. The use of financial derivatives is central to achieving this market-neutral exposure, effectively removing the direct impact of spot price fluctuations from the return equation.

This product is tailored for investors looking to introduce an alternative return stream into their portfolios that is not dependent on broad market beta. It is suitable for those who want exposure to the unique dynamics of commodity futures curves without making a directional bet on whether commodity prices will rise or fall. The fund's focus on absolute returns and its potential to perform in various market environments may appeal to investors seeking to enhance portfolio resilience and achieve smoother returns over the long term, particularly during periods of volatility in conventional markets.