Are commodities and property going to boost returns? Fund selectors in Asia are planning more diversification into alternative asset classes, in particular commodities and property, according to FSA’s Asset Class Research.
Instead of focusing on growth, the commodity and resources sector now stresses profitability, said Investec’s Tom Nelson.
After launching an oil futures ETF in Hong Kong, CSOP’s next step will be leveraged and inverse ETFs in the SAR.
There are signs that high yields are tempting investors back to commodities-focused investment trusts, but analysis group Stifel warned that current yields may not be sustainable.