Funds Get Physical in Commodities Boom By Barbara Lewis and Clare Black LONDON (Reuters) - Big-money investment funds are deepening their thrust into booming commodities markets by buying up physical assets and taking a nimbler trading approach. An early influx of speculative hedge funds into commodities markets has been joined by growing investment from more cautious pension, insurance and endowment funds as evidence grows that the commodities boom is no passing fad. "The funds are bringing with them sophistication they had on the financial markets," said Jean-Michel Boehm, commodities business development manager with ABN-Amro. A buy-and-hold strategy focusing on index-style investment on tools such as the Goldman Sachs Commodities Index has meant rich pickings as raw materials prices surged to record highs. But investment funds are also adopting more active tactics to keep returns high. "Even pension funds who were passive index investors have shifted toward more active management," said John Iglehart, a managing director at Goldman Sachs. Funds are becoming more selective investors, said Michael Lewis, Deutsche Bank's head of Commodities Research. Examples might include sub-indexes, exposing them to say heating oil, jet fuel and gasoline and excluding crude. "Some investors are now looking at overlaying this (index investment) with more active management," said Deutsche's Lewis. More surprisingly, funds have bought commodities infrastructure or even taken physical delivery. The Ontario Teachers' Pension Plan, one of Canada's biggest pension funds, last year bought part of National Grid Transco Plc's gas distribution networks. Funds have also taken delivery of soft commodities like coffee and cocoa, which allows them to make profits when physical supplies are cheaper than futures.     Continued ... Quelle "Funds Get Physical in Commodities Boom" : reuters.com Main page for "Funds Get Physical in Commodities Boom"