Surveys
Investors Eye Commodities In 2015 – New Data
Investors are leaning towards commodities in 2015, according to new data from London-based investment firm, ETF Securities.
Precious metals and agriculture are hot commodities this year,
according to new research by ETF Securities.
Almost 40 per cent of the London-based investors polled expect
precious metals to be the best-performing sector and nearly half
predict gold prices will stabilise between $1,250 and $1,400 this
year.
The inclination towards precious metals reflects uncertainties
currently shrouding the macroeconomic horizon as investors seek
to reduce risks through portfolio diversification.
Despite deflationary fears and concerns over currency
depreciation in Europe, developed market equities also came out
as a popular investment, according to the poll. Worth noting is
the US Federal Reserve's recently lowered projections of an
interest rate hike, something which enhances the appeal of
dollar-priced commodities for holders of other currencies.
“The majority of our investors are more bullish and have more
confidence about the outlook for economic growth this year,
reflecting the heightened appetite for developed equities,” said
ETF Securities' head of European distribution, Bernhard
Wenger.
“In light of continued volatility due to macroeconomic
uncertainty, portfolio diversification remains firmly on
investors’ agendas and commodity allocations are a key part of
that strategy.”
Elsewhere, low oil prices made oil exchange-traded products an
attractive investment, and ETF securities' oil ETPs boasted
inflows of $1.05 billion in this year's first quarter.
Meanwhile, Italian and Swiss investors favoured agriculture, with
47 per cent and 30 per cent of the votes respectively.
EFT Securities' poll took results from 446 investment
professionals during the ETF Securities Annual Investment
conferences, which took place in Frankfurt, London, Paris, Milan
and Zurich during January and February.