The scale of investor demand for commodities has been likened to that for technology investments at the turn of the century after research showed Specialist as the best selling IMA sector for April.
According to monthly statistics from Fidelity FundsNetwork, the specialist sector was 40% more popular in April than it was in March, and more fashionable than bonds despite the market conditions.
The FundsNetwork research also shows its own cash fund as the seventh best-selling fund in April, and reveals riskier investors targeting Asia, Japan and global emerging markets would have been rewarded.
Jason Walker, senior manager at AWD Chase de Vere, says the popularity of the specialist sector can be attributed to consumer desire for commodities.
“We have seen in the past few months that commodities have been in favour with investors,” he says.
“In fact, it almost harks back to the technology situation back in 2000 when we had clients phoning in saying they want to invest in this area.
“They are doing this off their own backs and commodities have done well over the past few years.”
The Invesco Perpetual High Income fund was the best selling fund through FundsNetwork in April, followed by the BlackRock UK Absolute Alpha and the Jupiter Merlin Income Portfolio funds.
After specialist, the best selling IMA sector through the platform were UK Equity Income, up 27% on March, UK All Companies (+27%) and Cautious Managed (+11%).
The best IMA sector returns in April were Asia Pacific excluding Japan (+ 8.31%), Japan (+ 7.61%), and Global Emerging Markets (+7.34%).
The ISA best sellers in April were the Fidelity FundsNetwork ISA Cash Park, the Invesco Perpetual High Income fund, and the BlackRock UK Absolute Alpha fund. The SIPP best sellers were theFidelity Cash fund, the Invesco Perpetual High Income fund and the BlackRock UK Absolute Alpha fund.
David Dalton-Brown, head of Fidelity FundsNetwork, says: “On the whole, investors and advisers retained their cautious stance in April, with investments in bonds, cash and the domestic market being the most popular.
“ISA investors in particular continued to hedge their bets by making use of our ISA cash park to buy themselves more time to decide on their investment choice for the new tax year.
“Any investors willing to take more risk, however, would have been rewarded in April with Asia, Japan and global emerging markets topping the tables for sector performance. US equities also fared well during the month.”
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