\n
\n
CattleNetwork.com – The relentless flow of money into commodity index funds is slowing as money managers chase higher returns in commodities hedge funds, Barclays PLC unit (BCS) Barclays Capital said Tuesday, citing a survey of clients.<\/p>\n
Although fund managers are expected to continue piling money into commodities, they are shying away from the $110 billion index fund sector because of the current roll-over cost in crude oil futures, Barclays Capital said, based on the findings of a survey of more than 110 of its U.S. clients.<\/p>\n
The proportion of Barclays Capital\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s clients expecting to invest more than 10% of their portfolio in commodities over the next three years has more than tripled in the past year to 53%, according to the study, which polled pension funds, hedge funds and retail distributors, among others.<\/p>\n
\n
More than half the respondents expect to be invested in hedge funds in the next three years, up from 21% in a similar survey a year ago, while those looking to invest in index funds have slumped to just 3% from 47% a year ago.<\/p>\n