Commodities the new hedge funds – Credit Suisse –

IPE.com – Commodities could become more popular than hedge funds among institutional investors, according to Credit Suisse.

According to a spokesperson, pension funds find commodities quite “compelling”, especially because they are less expensive than hedge funds.

Most schemes are allocating roughly 5% to commodities. “They don’t just want to dip a toe in the water, but make a meaningful contribution,” said the spokesperson. “Below this, there is less of animpact,” he added.

Much of the allocation to commodities is coming at the expense of lower allocations in equities, said the spokesperson.

In a statement released today, Credit Suisse stated it believes commodities answer the fundamental need of institutional investors for long-term strategic diversification and urged investment in abroad commodities index.

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