From the WSJ: With juicy profits from rising exports of raw materials, government-run funds in Asia and the Middle East are now investing billions of dollars directly into crude oil, copper and other commodities in a development that could reshape markets globally.
Total commodity investments by what are known as sovereign-wealth funds are around 1% of the funds' total assets of nearly $3 trillion -- an average based on estimates by Morgan Stanley, Global Insight and other analysts. That amounts to a sizable $30 billion worth of state funds in commodities, up from a fraction of that amount five years ago.
But state-run fund investments in energy, agricultural and other commodity markets are expected to get even bigger due to rapid economic growth in China, Saudi Arabia and other emerging markets and related high commodity prices
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