Commodity-linked structured and exchange traded products (ETPs) have suffered in the second quarter of 2009 as inflows into the investments have slowed, according to Barclays Capital. ETPs in particular have been the losers, says BarCap, with assets under management (AUM) increasing by only US$9 billion, two thirds of which were new inflows, compared to a $17.5 billion increase in the first quarter of 2009. While cumulative issuance of structured products has increased to $50 billion, issuance in the second quarter is a 'relatively meagre' at $1.2 billion. Commodity indexes, by contrast, have been the winners, increasing quarter on quarter by $23 billion, of which $10 billion was fresh inflow, says BarCap. Commodities as an asset class are anticipated to remain in favour among pension funds, sovereign wealth funds, and hedge funds, despite an upcoming slowdown in the rate of new investment, says the research. The asset class was one of the best performing in Q2 2009, with AUM increasing by $34 billion overall. Related stories: S&P launches Ucits version of commodities index Commerzbank launches commodity index ETF...
Start a FREE trial or subscribe to continue reading:
Start a 4 week free trial
Try Risk.net's premium content for a limited period. Register now for your FREE trial to one of our leading brands.
*not available to previous trialists or subscribers.
Log In or Subscribe Now
Subscribe to Risk.net Business now to access all our premium news & features content for 1 year.
Pay by Credit Card for immediate access.