British retail giant Sainsbury is to invest some of its pension funds in commodities, it has emerged.

Speaking at the Portfolio Diversification: Commodities conference, Sainsbury's fund investment chief Chris Armitage said the firm would push ahead with its plans to enter the new market.

A total of five per cent of the firm's £3.8 billion fund will be invested in commodities by summer of this year.

"We will shortly be investing in commodities," Mr Armitage confirmed, according to the Financial Times.

The move represents an overhaul of Sainsbury's pension scheme, with Mr Armitage acknowledging that the move was a brave one in the context of what he said was a conservative fund.

Commodities are said to hold a number of key advantages at present, with returns expected to be comparatively high from the investment.


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