GLOBAL - Schemes are being urged to take an overweight position in commodities until the end of the war in Iraq.
Axa Investment Managers – which has seen lower-than-expected returns from the asset class since its introduction last September – recommends the overweight position until the “geopolitical uncertainty fades”.
Commodities produced returns of 3% for Axa since September against an expected year-on-year performance of 10%.
Axa senior strategist Franz Wenzel said energy and precious metal components should hold up through uncertainty about the Middle East.
But he warned that copper may trade with increased risk due to weaker semi-conductor sales.
Wenzel added: “We recommend to stick to the overweight position for the time being, until the geopolitical uncertainty fades.”
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