Commodity prices were supported by the outcome of the eurozone summit in June and Credit Suisse thinks they can continue to rise on the back of more robust economic growth in the second half of the year.

At the end of June, European leaders agreed to create a single supervisory body for banks in the eurozone and allow them to be recapitalised without adding to government debt. Despite not being widely described as a "big bazooka" event with a solution to all the region’s problems, the summit has eased fears over Spain and Italy.

The Dow Jones-UBS Commodity Index Total Return was up by 5.49 per cent in June as 14 out of 20 index constituents increased in value.

At the same time, Credit Suisse says that investors need to keep a close eye on the current economic backdrop: “The worsening economic environment in Europe and a perceived slowdown in China have raised concerns of a possible softening in underlying consumption for economically sensitive commodities such as petroleum and base metals,” said Christopher Burton, senior portfolio manager of the Credit Suisse Total Commodity Return Strategy.

But Burton believes that further easing measures by the world's central banks may increase inflation expectations as well as cause inflation to overshoot those expectations, and stresses that commodities have historically outperformed during periods of higher than expected inflation. Ultimately, Credit Suisse believes investors will benefit from what it sees as long-term diversification advantages in commodity investment.

The team behind the Credit Suisse Total Commodity Return Strategy managed $10.1 billion at the end of June.