Copper: worth its portfolio weight?

A barometer of long-term commodity demand, copper prices are more than three times the level of a year ago, but forecasts vary widely. How are portfolio managers reacting to the uncertain price outlook? By Kathleen Kearney

Copper and other base metal derivatives are forecast to attract greater interest from funds in the coming 12 months, despite signs that the four-year bull run in metal prices is losing steam amid poor performance at many funds. Still, portfolio managers say sustained real demand growth and above-average price volatility should make copper and other base metals an attractive investment in 2007.

"There is no reason why funds will pull out of metals when prices are where they are," says Duncan