However, it is a heterogeneous area, and this month we speak to managers and intermediaries, as well as looking at the performance data of constituents, to seek out comment on the multiple investment ideas on offer.
Often unkindly described as the dumping ground for those funds that are simply too thin on the ground to merit their own sector - as notably happened in recent months with the decision to kill off the Zeros sector - the Specialist sector is the one that offers a number of well performing funds overseen by managers with proven ability to add value.
What investors need to keep in mind, however, is that it is not a sector that can be approached for a direct comparison with others.
Instead, it is really a matter of looking to the individual constituents of the sector and the asset classes and investment style they carry. As the chart below suggests, the Specialist sector has underperformed the Asia Pacific ex Japan - one of the more popular IMA equity sectors over the past year.
Performance of IMA Asia Pac ex Japan, Specialist sectors vs FTSE All Share over 1-yr
Source: Financial Express Analytics
However, bearing in mind the heterogeneous nature of the Specialist sector it may be fairer to say that Specialist sector funds are showing that there are different ways to "skin a cat" in respect of the themes being played out in the Asia Pacific ex Japan sector.
Consider, for example, how among the best performing funds over three years the Specialist sector constituent Scottish Widows Latin American stands out, alongside the likes of Asia Pac ex Japan constituents First State Greater China Growth, Gartmore China Opportunities, CF Canlife Far East and Fidelity Institutional South East Asia.
With Brazil's and China's economies linked to the extent they have held talks over usurping of the dollar as the global reserve currency, it is perhaps not surprising funds focused on opportunities in both these markets are performing well. Specialist sector funds focused on Brazil, Russia, India and China (BRIC) are among the stronger performers over the period - such as Allianz RCM BRIC Stars or Neptune Russia and Greater Russia.
Beyond geography there are some sector-based themes that are doing well. Strong performances have been seen over the past three years and the past 12 months in the area of commodities/energy, from the likes of BlackRock Gold & General, Investec Global Gold, and First State Global Resources. These have not only served up solid returns, but also been among the funds whose factsheets have been among the most viewed by users of Trustnet. If anything the commodities/energy play has gained strength in the short term, with CF Ruffer Baker Steel Gold, Oceanic CF Australian Natural Resources and Smith & Williamson Global Gold & Resources among the top five performing open ended funds across all IMA sectors in the past year.
Other themes have been less successful. Hedge, equity and fixed interest alike have been the foundations of some less than stellar performances: Margetts Greystone Total Return offers single digit negative returns over the past year, despite some exposure to holdings such as the CF Octopus Partner Absolute Return, a fund that leads its own IMA Absolute Return sector.
Other portfolios built around biotechnology, corporate bonds and insurance company equities are also well off the pace compared with the sector’s leading constituents. Then there are those built on exposure to financials or property, which unsurprisingly are in negative return territory on a three-year basis.
To sum up, ignoring the Specialist sector because of its heterogeneous nature would be a mistake; comparing constituents may be tricky, but a number of them are among the best run portfolios anywhere.