LONDON (Reuters) – Investment manager Global Advisors has launched two new commodity futures funds to meet strong demand from institutional investors, who now see the sector as a separate asset class.
Commodity markets have slipped in the past couple of weeks, but the long-term trend of higher prices, boosted by supply shortages and strong demand from emerging market countries such as China and India, is intact, investors say.
Other attractions for institutional investors such as pension funds include commodities’ normally low, sometimes negative correlation with assets such as stocks and bonds.
“Since the cyclical lows in commodity markets that were reached after 9/11 we have seen massive interest develop amongst institutional investors,” Global Advisors co-principal Russell Newton said in a release on Thursday.
“For the first time in over 20 years, commodities are now being recognised as a mainstream asset class.”
