Commerzbank AG (CBK), Germany’s second largest bank, has removed agricultural products from a commodity index fund, Reuters reported on 9 August 2012. While the bank so far has not elaborated on the reasons for the move, the decision is attributed to accusations that speculation has pushed up food prices and fuelled unrest in several of the world’s poorest countries.
Reuters reported that Commerzbank removed agriculture from the ComStage ETF CB Commodity EW Index TR. The fund was restructured on July 30 and currently contains 12 metals and energy commodities. And while Commerzbank has not offered a specific explanation for its decision to remove agriculture from its $145.1 million (£92.5 million) fund, it is not the first German bank to restrict investments in agriculture.
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