Capturing new dynamics in commodity markets
Investment Approach
High-conviction, actively managed global portfolio focused on higher quality companies that can allocate capital effectively
Investment Opportunity
Capturing the natural resources opportunities, including those from the transition to decarbonisation
Investment Universe
Energy, base metals and bulks, precious metals and agriculture equities
Target Return
Outperform the performance comparison index (net of fees) over a full market cycle
Natural resource equities have outperformed physical commodities over time. We believe they offer attractive FCF yields and valuations
Low to negative alpha correlation with widely held equity styles and other real assets
Exposure to the energy transition, which is driving demand for materials
Historical relationship evident between persistent inflation and performance of natural resources
Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.
The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.
Investing in foreign securities may be subject to risks pertaining to overseas jurisdictions and markets, including (but not limited to) local liquidity, macroeconomic, political, tax, settlement risks and currency fluctuations.
Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that, in certain market conditions, the value of the portfolio may decrease whilst more broadly-invested portfolios might grow.
Investments in real estate securities can carry the same risks as investing directly in real estate itself. Real estate prices rise and fall in response to a variety of factors, including local, regional and national economic and political conditions, interest rates and tax considerations.