Patrick Hosking
27 March 2007
In the past five years institutional investors have diverted
growing sums into commodities, attracted by the yields and the
diversification properties. Energy and many raw material prices have
soared, with booming demand from China and India cited as
explanation, producing strong returns for many commodity investors.
In demand
-
Of $18.6 trillion of pension fund assets, $80 billion is invested
in commodities
- The FSA [Financial Services Authority] predicts that this figure could rise to $930 billion if consultants’ advice is followed
- The pension funds of BT [British Telecom] and J Sainsbury are investing in commodities
Writer Patrick Hosking in www.business.timesonline.co.uk