Surveys

Investors Eye Commodities In 2015 – New Data

Amisha Mehta Reporter London 26 March 2015

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.

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