The PIMCO All Asset Fund, a fund-of-fund with $13 billion in assets, has quadrupled its commodity exposure to 12%, Bloomberg reports. Likewise, a Japan version of the All Asset Fund has also quadrupled its commodity holdings from 5% to 20%.

Rob Arnott, chairman of Research Associates, a sub-advisor to the fund, said he believes that with supplies at risk and geo-political risk “dormant,” commodity values will increase.

“Commodities have tumbled. When they move substantially, they often reverse,” he said.

Indeed, the fund’s benchmark, the Dow Jones-AIG Commodity Total Return Index, is up 7% in the past two months after tumbling 14% in the previous three months.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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