View more on these topics

Commodity assets halve from 2011 peak

UK-Currency-Money-Coin-Pounds-GBP-700x450.jpg

Assets invested in commodity funds have halved from their peak four years ago, hitting $127bn (£80.9bn) in July, data from Lipper shows.

The assets have been hit by both outflows and underperformance of funds, as commodity prices have plummeted.

Over the past three months to July commodity funds have seen $3.2bn in outflows, with the past month alone seeing $1.7bn in outflows, the worst for any asset group.

However, over the longer term outflows have been starker, with $39.8bn leaving the funds in the past three years.

Returns on commodity funds have also disappointed, as the oil price has plummeted, along with the price of precious metals. This price drop is reflected in the market. Year to date the FTSE 350 Industrial Metals index has dropped by 38 per cent and the FTSE 350 Mining sector is down by 22 per cent.

Over four years commodity funds have made a 39.9 per cent loss, with the past year alone seeing a 27.7 per cent loss.

“All asset types posted negative average returns, with commodity funds taking the biggest hit (-8.7 per cent) due to a further drop in energy prices after settling the Iran deal and a significant decline in precious metal prices,” says Otto Christian Kober, Lipper’s global head of methodology and author of the fund flows report.

However, prospects for commodity investors do not appear to be looking up, with Rowan Dartington Signature managing director Guy Stephens saying: “Commodity prices and oil prices look like they will be staying very subdued until well into next year.”

Recommended

3

Apfa launches second ‘cost of regulation’ survey

Apfa has launched its second “cost of regulation” survey as the Government prepares to investigate the operation of the advice market. The survey aims to record both direct and indirect costs on Apfa members. Last year’s study found that smaller firms were spending on average 12 per cent of their income on compliance and regulation, […]

USA-America-New-York-NYC-Statue-of-Liberty-700x450.jpg

Fidelity American fund manager Kaye departs

Peter Kaye has left Fidelity, stepping down from the Fidelity American fund he was recruited to turnaround two years ago. Kaye will leave the company “by mutual consent” on 1 September after he has finished a transition period. He is passing the reigns of the fund to Aditya Khowala, who already runs the American Growth SICAV. Kaye […]

British Friendly hires LV= protection boss

British Friendly Society has hired LV= managing director for protection Iain Clark as marketing and distribution director. Clark will join the company in the new role in September. Prior to LV=, where he has worked for the past four years, Clark has also held sales director roles at Legal & General and PruProtect. British Friendly […]

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg
5

Ex-IFA jailed over £350k theft from elderly clients

A former financial adviser has been sentenced to six years in prison after a court found him guilty of stealing over £350,000 from four elderly and vulnerable people. Peter Bottomley, from Morecambe, was an authorised independent adviser until 2003. But after his authorisation ceased he continued to manage the finances of some elderly people, often […]

In Focus image

In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment