Business | Banking
Channel Sponsor
HSBC fund division cuts exposure to commodities
One of HSBC's most actively managed fund divisions has been reducing its exposure to commodities, expecting a major correction in the high-flying sector.
- Reuters
- Published: 23:52 May 11, 2008
London :One of HSBC's most actively managed fund divisions has been reducing its exposure to commodities, expecting a major correction in the high-flying sector.
The $2.7 billion Absolute Return Service, part of HSBC Investments, now holds only around two per cent of its portfolio in commodities, down from a high of around 17 per cent earlier this year.
Charlie Morris, head of absolute return, said commodity prices had risen to unsustainable levels.
"We are waiting for a full on commodity correction," he said, adding that the risk return for investors in commodities was now higher than for equities.
Morris said his division's exposure to commodities was now almost totally restricted to industrial metals. It moved heavily into agricultural commodities such as wheat, corn and soybeans in April last year.
Share this article
More from Banking
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Cafe Nero's premium coffee blends
UK chain plans to open 50 outlets in region following UAE launch
-
Emirates to fly direct to Tokyo
Airline considers code-share deal with JAL after adding second destination in Japan
-
Work on world's longest sea crossing
The proposed Qatar-Bahrain causeway project is estimated to cost Dh9.9 billion
