June 2009

Earlier this year we told you we’d be introducing some strategic changes to the BT Multi-manager investment options to maximise their potential performance, while minimising the risks. There are two main categories of change.

1. Adjusting the mix of asset classes within the funds.
2. Determining the investment managers who will help us manage the money and how they’ll do it.

We’re pleased to let you know that we’ve now started adjusting the mix of asset classes – we’ve introduced commodities as an asset class within Alternatives.

Why commodities?

When asked about the benefits of introducing commodities into the BT Multi-manager investment options, Patrick Farrell, Head of Investment Solutions, commented “introducing commodities will significantly improve the long-term risk/return profile of the BT Multi-manager funds”.

“We believe the recent decline in commodity prices following the dramatic economic slowdown provides good buying opportunities and we want to make sure investors are able to take advantage of these market opportunities through the BT Multi-manager investment options.”

Our Investment Solutions team also believes the high demand for commodities from the emerging world will continue, due to the extent to which these economies are transforming from an agricultural base to a more industrialised society.

The BT Multi-manager investment options will gain their exposure to Commodities through the Credit Suisse Enhanced Commodities Fund.

Look out for further updates as we continue to bring together the BT and Advance multi-manager funds.