UK IFAs seek commodity exposure

Barclays in the UK has launched a new plan that focuses on the theme of agricultural commodities following interest from IFAs and potential investors. The final returns of the Barclays six-year Agricultural Commodities Plan are based on the performance of the Goldman Sachs Commodity Index (GSCI) Agricultural Excess Return - an index which measures constituent commodities such as sugar, coffee and corn.

According to London-based Collin Dickie, director of Barclays Investor Solutions, recent research suggests that the agricultural commodities sector is undervalued and has considerable growth potential owing to demand for ‘western’ products, such as coffee in emerging markets countries such as China.

What’s more, high demand for energy from these regions is also driving countries towards the use of alternatives such as bio fuels derived from commodities such as corn and soya.

The plan will return