A number of pension funds are considering the ethics of commodities investments, Reuters reports. Pressure groups have alleged that the large inflows into the sector have led to distorted markets, fuelled food inflation and hurt poor nations.

Many fund managers think that about a 40% rise in global food prices over the past 12 months is due to short supplies and flourishing demand, rather than speculation. The £27 billion Royal Mail Pension Plan put on hold its proposed plan to invest in commodities, while Dutch pension fund PME is weighing options other than commodities.

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