Hermes Fund Managers see is a resurgence of interest in commodity investment from pension funds and other institutions which provide protection against inflation flowing into long-only funds,
Hermes Birkin 42CM which earlier in the year where the markets dried fallen sharply.
Colin O'Shea, Product Manager London-based Hermes, said institutional investors a return of confidence in the diversification of equity portfolios picked hard in commodity markets in recent weeks
The Thomson Reuters-Jefferies CRB index. CRB, a barometer of market goods, the 19 markets tracked, shed nearly a fifth after hitting a peak in February, but has rebounded to revive more than 16 percent since the markets at the end of June.
Barclays said on 24 August so far in 2012, there was a performance of nearly six billion (3.7 billion pounds) of investments in commodities, but in July there was an influx of 463 million dollars.
"As the markets were during uncertain, especially since we went through this summer, we saw the dry beta certificates," O'Shea told Reuters in an interview.
"If you. Decrease the mid almost 20 percent in terms of products that combine the best of us can scare"
He was to investors, investment in the long. Applies only products and measures exposure to commodities as an asset class since the beta correlation of investment in the underlying industry or reference
Hermes by telecommunications giant BT (BT.L)
Hermes Constance Bags pension fund, the largest in the UK, $ 2.3 billion of assets include commodities.
Approx. U.S. $ 1.8 billion investments in commodities are long-only funds and the remaining $ 500 million in funds that focus on absolute returns and can also short positions.
Many institutional investors started to move raw materials such as diversifying a decade ago, but recently the emphasis on the lookout for investments that address future inflationary pressure, it may, in particular pension funds.
"I think the main reasons that we had seen for five or six years beta investment diversification, it was all," he said.
"It's still there, but an interesting trend that we saw some institutions focus on inflation. They want more and the number one reason to cover their obligations to inflation."
Although the correlation between income and equities has increased in recent years, there are still advantages of diversification,
cheap hermes outlet particularly against fixed income, where connections are still very low, said O'Shea.
ABSOLUTE RETURN
The dynamic products of raw materials were Hermes Absolute Return Long-Short Fund, which targets. Returns of money, more than 10 percent per year
The assets of these products, which rose from investors higher returns outside of equities are preferred, to $ 500 million $ 20 million in the previous year.
Flows into long-short funds held up well, even if the flow dries up in the long-only fund, said O'Shea.
"I think that's the reason it the low bond yields, can not see the people really strong returns on their assets. One seeks equity-like returns without equity, such as volatility. C 'is such an important topic at the moment."
These commodity funds Hermes volatility of 6 percent to 15 percent for stocks, O'Shea.
Hermes investments in commodities began with a strategic asset allocation of the pension plan of BT, but now has about 50 foreign institutional investors.
In commodity markets, promotes Hermes Gold and neutral grains and industrial metals and oil.
"One thing that has helped the market this year, the central bank continued strong buying power room is gold. We expect that to continue," he said.
Among cereals, soy and corn Hermes is overweight and sees opportunities in terms of wheat futures in Paris.
In crude oil supply-demand fundamentals are balanced. "We are not the expression of opinions on important energy prices flat at the moment, given the asymmetric risk that might result from the situation between Iran and Israel."
Hermes, which has 40-60 positions on commodities at a certain time,
hermes online outlet focuses on the areas of energy relative value and has a few options to increase coverage as geopolitical risk.