Far from being concerned with the recent spike in commodities prices, fund managers are piling in to the asset class to ride out the wave of inflationary pressures and make a good return in the process.

A note from Bank of America Merrill Lynch today said that the bank had increased the overweight position it took on commodities at the start of the year, cut back its overweight equities position slightly and remained shy of low-risk assets, such as cash and bonds.