Investing in Global Commodities

Ive just been reading this thread with interest and sorry for butting in but Im about to switch my pension to Eagle star global commodities fund, after having done some research. (74% energy, 13% agriculture, 7% metals, 4% livestock, 2% precious metals.) It is a unit linked fund, but can someone explain this in very simple terms? If I was paying 100 euro in every month, does this mean I'd be buying 100 units say at 50-60 cent and then when market recovers the unit price will go up?
 
do you not think investing your whole pension in commodites is a bit of a risk??
 
The fund allows you to switch, so I can keep a close eye on it. There is nothing else I believe is worth investing in. I reckon the short supply of commodities (food and oil)and the huge demand is only just beginning. Recent food riots, recent attack on nigerian pipeline, demand for metals from chindia, I could go on and on. Growing more biofuels will continue to affect the price of grain....I will investigate other options...but can you explain what Unit linked means in simple terms??I've been trying to decipher Wilkes post, but I'd need a degree. Thanks
 
Each contribution buys a number of units at a price, which reflects the value of the assets in the fund, which could be stocks and shares, property etc.
 
the price of a unit could be 10 euro, if u put 100 in, you buy ten units.
 
by the way if u did 50 - 50 with equities i think ud b better off.
 
so if the unit price reflects value of stocks, shares etc in the fund and for example 100 euro buys me 10 units, its fair to say the units I buy can increase if the the market recovers, (and also go the other way)

The reason I like commodities they are tangible, since they are a world neccesity, there will always be a demand for energy and food. Equities trickier, but I'm surprised at how well some irish food companies are doing at the moment. Eagle star pension funds received money mate awards and they are transparent, with charges etc and you can track them online with your pin and switch to other funds and their min contribution is 30 euro!

I'll be transfering money from an old pension into it and believe this can take up to six weeks! If anyone knew the ideal fund we'd all be investing in it, My ideal fund would be a 10 million sitting in the bank and live off the interest:)
 
look at rabodirect too. they have exposure to oppenheim funds which have consistently outperformed the rest.

you are right when you say if the market goes up the value of your units go up. its just a technical term really.

there will always be demande for equities too i.e. big companies dont just go under and stop trading . the price of oil went to 10 dollars a barrel a decade ago, why coudl it not happen again??

US equities look very good at the moment

by the way for other posters the "legendary" boone pickens was on cnbc again last nite saying that oil is going to 150 even though a few months back it was going to 80 - a senile old man
 
Some interesting stuff on radio 1 this morning. One commentator was asserting that a commodity bubble had formed and prices are nearing a correction. Said he was expecting oil prices to fall 20-30% in the near to medium future back to a more sustainable level. Felt the same was true of commodities on a general level. His argument was that the there are far more speculators involved in commodities at the moment than "normal", hence creating artificial price inflation, (ie. some underlying shortages are grossly exaggerated by speculation).
 
Governments profit bigtime out of oil in taxes; recent truckers strike in U.K.
Bush annouced huge tax incentives for oil companies. I dont see price of oil correcting anytime soon, and I think it will hit 150 a barrel which is good for investors but very bad for the general economy. Eagle Star have another fund which is less heavily weighted in oil, the Earth resources fund, I think
spreads the risk more evenly, 25% agriculture -(coffee, sugar etc),
24% precious metals, 27% alternative energy, with only 24% in oil.
If a fund is transacted in dollars, does that mean the units are purchased in dollars. So my euros would buy more dollars, does anybody know?
 
yes the units will be priced in dollars - dont bank on the dollar staying at the level its at now for much longer though
 
Thanks Mickman. I think the feds rate cut will be last, but at least 6 months to a year before dollar starts to recover.
 
raven said:
Some interesting stuff on radio 1 this morning. One commentator was asserting that a commodity bubble had formed and prices are nearing a correction. Said he was expecting oil prices to fall 20-30% in the near to medium future back to a more sustainable level. Felt the same was true of commodities on a general level. His argument was that the there are far more speculators involved in commodities at the moment than "normal", hence creating artificial price inflation, (ie. some underlying shortages are grossly exaggerated by speculation).
Click to expand...

I agree with this oil is long due a big correction, it has been more or less straight up for the last 6 months, alot of it is to do with money leaving financials and equities and trying to ride the commodity wave (as it is the only thing going up), therefore there is alot more to it than just supply and demand, the same true for food, an awful lot of speculative money involved, i think oil could fall back down to 80/90 a barrel, i also think the dollar has stabilised for now
 
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