canada goose clearance sale Pension funds mull ethics of commodity Canada Goose Coats On Sale investments
LONDON uk canada goose (Reuters) Some pension funds are beginning to question their investments in commodities after accusations that massive flows into the sector have distorted markets, fuelled food inflation and hurt poor nations.
Canada Goose Parka The role of hot money in commodities has unnerved some investors following high profile campaigns by pressure groups and French President Nicolas Sarkozy linking surging grain and fuel prices to a rise in poverty in developing countries.
last canada goose uk shop thing they want to do is to be on the other side of a trade to a starving person in Africa, said a source in the fund management industry in London who has noted canada goose uk black friday an increase in concern about the issue but declined to be named.
cheap Canada Goose France is due to press for tough new regulations on commodity speculation at the canada goose coats on sale first ever summit of agriculture ministers of the G20 group of top economies this week.
Many fund managers canada goose black friday sale have stuck to the view that a near 40 percent rise in global food prices over the past 12 months Canada Goose Parka as measured by the UN Food and Agriculture Organisation is being canada goose clearance sale driven canada goose store by short supplies and burgeoning demand, not speculation.
Canada Goose Outlet But worries are increasing that billions of dollars of fresh investment from pension and hedge funds may be exaggerating swings in prices and creating excessive volatility.
One fund concerned about a possible link between commodity investment and spiralling food prices is Dutch pension fund PME, which manages over 20 billion euros (17.8 billion pounds) for workers from the metal engineering sector.
Canada Goose Jackets is thinking very seriously about the effects of its canada goose uk outlet commodity investments and has to weigh different interests, a PME canada goose sale spokeswoman said.
canada goose black friday sale it looks very closely at the social effects of its investments, such as the possible contribution to increased poverty. So canada goose factory sale far this effect has not been proven in our view.
According to Barclays Capital, which has been at the forefront of selling investments linked to commodities, such as index swaps and exchange traded products, total money in those type of products have ballooned to over $400 billion.
The UK 27 billion pound Royal Mail Pension Plan Canada Goose Jackets has previously considered investing in commodities, but decided to avoid the asset class for strategic reasons.
canada goose deals all the media coverage now, relating to the market if we had invested I am sure we would canada goose have had to consider our position, said Gerry Degaute, chief executive to the board of trustees overseeing the scheme.
Canada Goose sale GENEVA MEETING Another sign of the growing interest was a meeting of pension funds in Geneva last week to look at ethical issues regarding investments in food and commodities, said Karina Litvack, the head of sustainable investment at fund manager Foreign Colonial.
canada goose coats on sale While canada goose clearance she does not blame speculation for cheap Canada Goose high prices, Litvack said in a recent interview that Canada Goose sale there are legitimate concerns about volatility.
buy canada goose jacket cheap Fund managers that specialise in sustainable investments are probing whether they can canadian goose jacket exercise enough influence when investing in financial instruments linked to commodity funds, said Penny Shepherd, chief executive buy canada goose jacket of UK Sustainable Investment and Finance.
canada goose coats one of the dilemmas around investing https://www.canadagoosesale.info in something like a commodity index compared with let cheap canada goose uk say investing in an investment opportunity like a sustainable forestry fund or a responsibly managed agriculture fund, she told Reuters.
Canada Goose online Sharp swings in volatility that may be caused by an excess of speculative money is also an issue for long term investors such as Canada Goose Outlet pension funds and ethical funds, Shepherd added.
canada goose store Some pension funds flatly reject arguments that their commodity investments may be harmful.
Dutch asset manager APG, which manages the assets of the world third largest state pension fund ABP and other funds, said its food and energy investments did not have an upward price effect because its allocation had Canada Goose online been stable for many years at around 4 percent of total investments.
APG managed 272 billion euros at the uk canada goose outlet end of 2010.
buy canada goose jacket investors often have a cushioning effect on canada goose coats prices, both upwards and downwards. If prices rise too strongly they are often the parties who sell on a net basis to make sure their allocation to commodities won be too large, an APG spokesman said. pension fund, Calpers, has about $2.8 billion invested in commodities and said it may boost active investments in the sector.
canada goose clearance thing surfaces every time commodities get going and prices go up. politicians get involved and they accuse investors of pumping it up, a Calpers spokesman said.
actually testified on the issue, cited all kinds of reports, some of them federal reports, showing that this is a market issue, stemming mainly from supply demand.
Finland Keva, which manages local government pensions, said it was not worried about its commodity investments of about 220 million euros, or about 0.8 buy canada goose jacket cheap percent of total capital, because it did not regard index investments as speculation.
The UK Universities Superannuation Scheme, with about 32 billion pounds of assets, agreed investment may push up futures prices in the short term, but argued this may be beneficial.
could allow producers to hedge future output at higher prices, encouraging more investment and more output, and may encourage more storage, helping to keep prices down and to dampen the effects of negative supply shocks such Canada Goose Online as drought, said Roger Gray, chief investment officer.
canada goose Additional reporting by Cecilia Valente in London, Terhi Kinnunen in Helsinki, Gilbert Kreiger in Amsterdam and Barani Krishnan in New York.