Institutional investors expect to substantially increase their commodity holdings over the next few years, according to a survey by Barclays Capital. About a third of the 100 Barclays clients polled at the firm's annual U.S. Commodities Investor Conference in New York this week said they expected commodities assets under management to grow by more than $60 billion to $150 billion by the end of 2008.
About 53% of respondents said they would have more than 10% of their portfolio invested in commodities over the next three years, compared with 19% of respondents last December. The survey also showed that investors are looking at broader commodities investment options, including active management and structured products.
Diversification is the primary reason for investing in commodities, the survey found.