Staff
Pension funds and other institutions are cutting back on commodity-related investments after they failed to hedge their portfolios against inflation risk.
The decision to pull out almost $10 billion from commodity indexes was driven by poor returns and impending U.S. regulations that are feared to make such investments complicated and costly, reports WSJ.com.
Most prominent among those ditching commodities is the California Public Employees’ Retirement System (Calpers), which retracted more than half of its holdings in commodities indexes.
Also read: