A little goes a long way: the multi-manager verdict on commodities

The commodity bears are growing in number. A recent survey suggested prolonged low inflation has sent commodities allocations among fund managers to a four-year low. A quarter of the panel of 231 managers – with a combined £432bn of assets under management worldwide – who responded to the Bank of America Merrill Lynch’s monthly poll on manager sentiment said a commodity collapse is the number one tail risk, an increase from 18% in April. Nearly a third – 29% – of those surveyed said they are underweight commodities, an increase from 11% in March. Mixed bag The view from multi-man...