European pension funds should invest at least three to five percent of their portfolios in commodities, with some 10-20 percent of that actively managed, a conference heard on Tuesday. «The 3-5 percent…is designed to protect against any price shocks and inflationary shocks, it is also designed to perform a role that equities and bonds don’t perform,» said Catherine Claydon, managing director of the Pensions Advisory Group at Lehman Brothers.

| Pensions |