Investors shift investments to commodities

Almost a third of UK institutional investors plan to increase their allocation to commodity-based Exchange Traded Funds (ETFs) over the next five years, according to Lyxor. The asset management firm’s research found 15% of institutional investors currently invested in commodity-based investment products and twice as many (30%) said they planned to increase their commodity exposure in the coming five years. The ETF provider explained commodities were increasingly being used by investors for diversification purposes, as well as for performing other functions such as inflation hedging. ...