Funds boost commodities allocation

A correction in the commodities market is giving pension funds a chance to increase their allocation to the asset class, providing additional portfolio diversification and inflation hedges. William Rhind, head of UK sales, ETF Securities, said as a result of strong movements in the oil market, there had been a massive reallocation from short crude oil ETFs into long positions. He said: "People decided that the downward trend in oil is over and put money back to work on the long side." Nicholas Brooks, head of research and investment strategy, ETF Securities, added: "The correction that ...