Commodities 2016 and Beyond


This week Manulife Financial, Canada’s largest life insurer, announced it is looking to add more commodities to its investment mix after prices plunged for metals including zinc and copper.

As well, the Financial Times forecast the end of this commodities price slump.

Global Commodities Outlook

Commodities Price Cycle Not Yet Hit Bottom

Screen Shot 2015-10-30 at 9.41.16 AM
Manulife wants to diversify its portfolio, which ranges from timber to cranberries, to limit risk while finding higher-yielding assets, CEO Donald Guloien said in an interview with Bloomberg Wednesday. The Toronto-based insurer is discussing how best to add commodities without physically storing them or becoming a mining company.
Bloomberg Commodities Index

Screen Shot 2015-10-30 at 1.32.18 PM
Meanwhile, the Bloomberg Commodity Index has been in decline for four years and counting. From its most recent peak in May 2011, the benchmark is off by half and scraping the lowest levels of the 21st century.
Manulife said this year it would consider purchasing oil and gas assets in Alberta as the price of oil dropped by half and energy companies began slashing jobs and growth plans. Manulife invests in commodities via its Hancock Natural Resource Group, which oversees about $14 billion in timber, agriculture and renewable-energy holdings. Manulife had more than $880 billion in assets under management and administration.