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Though these emergency measures may be essential to prevent any further contraction of financial markets, they could have serious, unintended inflationary consequences down the road. A new research report, “Expecting the Unexpected: Using Commodities as an Inflation Hedge,” released today by the Credit Suisse Total Commodity Return Strategy team, examines how investing in commodities could provide a diversified hedge against inflation, especially unexpected changes to inflation, while helping to improve a portfolio’s overall risk/return profile. Some key findings from the report include:

􀂄 The magnitude of the stimulus plans has many on alert that these large liquidity injections could lead to a significant spike in inflation;

􀂄 A situation where prices change “unexpectedly” could pose a higher risk to an investment portfolio;

􀂄 Commodities tend to be one of the few asset classes that may not only act as a hedge against, but may also benefit from, rising inflation; and

􀂄 Because commodities are typically uncorrelated to other asset classes, a broad commodity index

based investment can provide diversification benefits that cannot be achieved with other tools such as Treasury Inflation Protection Securities (TIPS).

For a copy of this report, please email ir.betastrategies@credit-suisse.com.

About the Credit Suisse Total Commodity Return Strategy
Credit Suisse’s Total Commodity Return Strategy has been managed for fourteen years and seeks to outperform the return of a commodities index, such as the Dow Jones – AIG Commodity Index Total Return or the S&P GSCI Total Return Index, using a quantitative commodity research process. Commodity index total returns are achieved through:

• Spot Return: price return on specified commodity futures contracts
• Roll Yield: impact due to migration of futures positions from near to far contracts
• Collateral Yield: return earned on collateral for the futures

About the Portfolio Managers
Christopher Burton, CFA, and Andrew Karsh are Co-Lead Portfolio Managers of the Credit Suisse Total Commodity Return Strategy. As of March 31, 2009 the team managed approximately US$1.8 billion in assets globally.