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Asset class popular for fund protection

Commodities are popular with funds wanting to diversify, but pension funds represent a very small slice of the total amount invested in commodities so far and this is set to grow

When rising inventories cause trading difficulties

Contango, which forces buyers to sell low and buy high at the end of every month, is a known problem to which a number of solutions have been devised, but each has its pros and cons

As unpredictable as the weather

There are many different ways to gain investment exposure to soft commodities without having to buy a warehouse

Sugar volatility

The recent volatility in sugar prices serves as a good example of the pitfalls of investing in soft commodities

Thirst for ‘blue gold’ set to grow

Investors need to stay informed about regulators’ plans, as water is a highly regulated sector

When paying fees is good

If commodities prices are in a supercycle, that adds one more reason to opt for active management

Indices show widely varying returns

Investors must beware the potential downside effects of investing in commodities via indices, warn experts.

Commodity ETF providers compete in race for assets

Competition for investors in exchange traded commodities appears stronger than ever

Record inflows for gold funds

Precious metals have seen a recent rise in popularity, partly driven by ETPs, and gold in particular has done better than them all