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Investment flows into commodities very strong

Sector more accessible due to a combination of strong fundamentals and new inventions

56 per cent of investors are not averse to commodity investments

80 per cent of Saudi investors view commodities as a safe investment
Dubai, July 25, 2011: Trust Securities, one of the largest derivatives intermediaries and a leading investment house in the Middle East, has said that investment flows into commodities have been very strong due to a combination of fundamentals and new inventions, such as exchange traded funds (ETFs), which have made the sector accessible to all.

Mr Asim Khan, CEO of the Dubai-based DMCC entity, said that commodity prices have risen dramatically over the past two years, thereby giving a big impetus to online commodity trading and investments.

According to a recent study by Barclays Wealth Insights, 80 per cent of Saudi HNWIs (High Net Worth Individuals) view commodities as a safe investment proposition, a far greater proportion than any other market.

The report is based on a global survey of more than 2,000 HNWIs. Saudi is the only country in the Middle East where all respondents expressed strong views on the risk factor of commodities, in stark contrast to other markets where up to 12 per cent of investors had no particular opinion on commodities.

About 44 per cent of UAE investors viewed investments in commodities as risky -- a higher proportion than any other market in the Middle East and second highest among all 17 markets and regions covered by the survey. The larger percentage is still not averse to investments in commodities, as the survey indicated. However, there is a growing interest in investments in commodities in the region due to the awareness and guidance provided by the companies like Trust Securities, he added.

Commodities are in a long-term trend of solid demand growth. The UN's Food and Agriculture Organization's (FAO) biannual Food Outlook earlier said that global food prices are likely to remain high for the rest of this year and into 2012 due to dwindling stocks and only small production increases for the majority of crops.

Citing a Barclays Capital report, he said the total investments into commodities have risen 250 per cent from US$159 billion in 2008 to US$400 billion in 2011, with investments in gold and silver rising three-fold during the period.

He said the ETFs have had a strong impact on the commodities market, making them accessible to everyone from the biggest hedge fund managers to the retail investor. By and large, commodities have been outperforming bonds, equity and currency investments, so it is most likely that it will remain a long-term bullish market.

Trust Securities is reaching out to the investors to present them with strategies for entering the market through the commodity futures. A Trust Securities survey has revealed increasing interest of investors in such alternative investment funds.

Mr. Bruce Powers, Head of Research and Analysis, Trust Securities, said during the financial crises of 2008, equities, corporate bonds, real estate, hedge funds, developed and emerging markets investments collapsed. However, there was one Alternative Investment strategy which stayed in the black in 2008 - Managed Futures Funds - returning 17 per cent that year. By the first quarter of 2011, assets under management (AUM) in managed futures funds had grown to over US$290 billion, more than 14 per cent of total hedge fund industry assets, according to Barclay Hedge. This reflects a greater than 600 per cent growth in AUM since 2000, and is 50 per cent above the growth rate of the larger global hedge fund industry.

-Ends-

About Trust Securities:
Founded in 2005, Trust Securities is one of the first clearing members of the Dubai Gold & Commodities Exchange. Licensed by the Dubai Multi Commodities Center (DMCC) and regulated by the Emirates Securities & Commodities Authority (SCA), it is a privately held Group owned by its management and employees. Headquartered in Dubai, Trust Securities employs over 70 people in its global operations. Trust Securities facilitate individuals, manufactures and distributors to access exotic commodities and currencies. Trust Securities provides investors with bespoke solutions to access commodities investments in a risk-adjusted environment to diversify their portfolio. The underlying assets are secured by the largest exchange in the Middle East, DGCX, and cleared through the DCCC for increased security and transparency.

Email us at: info@tsecurities.com Call us at: +9714 4405902

Visit our website at: www.tsecurities.com

Media Contact:
Mohammed Abdul Mannan
media@tsecurities.com

© Press Release 2011