FTFM
Resources
Principal content
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


