10 Oct 2023
6 minutes
Many investors have been wary of investing in companies in natural resources sectors amid climate concern. Yet a sizeable group of natural resources businesses have critical roles to play in the energy transition, and consequently significant structural growth potential.
Combined with underinvestment in new supply of transition-essential commodities and low valuations, it adds up to a fascinating time for investors to take a closer look at this unappreciated but highly dynamic part of the stock market.
Markets are pricing in a rapid normalisation of Middle East oil supply following the US-Iran conflict. The talk at a resources industry conference highlights that risks remain.
Natural resources equities can mitigate vulnerability to equity market-regime shifts. The asset class has distinct performance drivers that may complement existing equity allocations.
Investors typically access natural resources through either commodities or equities, but the outcomes can look very different over time. This paper explores why natural resources equities have historically provided a broader and more resilient source of returns.
A new commodity order is taking shape, defined by geopolitical fragmentation, electrification, supply constraints, regionalisation of energy and materials markets, and a re-ordering of global supply chains.
The closure of the Strait of Hormuz has triggered a severe global oil supply shock, leaving the market with a deficit that available alternatives cannot meaningfully offset. While prices have yet to fully reflect the strain, tightening inventories and disrupted flows point to higher near-term volatility and a lasting shift in the oil price outlook.
Oil markets have reacted sharply to the effective closure of the Strait of Hormuz. Paul Gooden, Head of Global Natural Resources at Ninety One, explains why the disruption is reverberating through oil and gas markets, how supply constraints are pushing prices higher, and what it could mean for energy markets in the weeks and months ahead.
Sahil Mahtani, Director of Ninety One’s Investment Institute, and Paul Gooden, Portfolio Manager for Global Natural Resources, discuss Venezuela and broader energy themes following the Goldman Sachs Global Energy Conference in Miami.
After glittering performances in 2025, gold and copper still look well supported. Meanwhile, following a trickier 12 months, the tide could be turning for oil and select agricultural commodities as substantial supply shows signs of moderating.
A new cycle reshaping global equity leadership.
The shares of gold miners have been very strong over the past 18 months. But after talking with gold companies at this year’s Mining Forum Americas, I came away confirmed in my view that the outlook for this equity sector remains bright.
A visit to US energy companies reveals a cautious mood among oil executives. But the outlook for gas is more bullish.
At commodity conferences in the US, a mood change among industry players was palpable. In the mining sector, the stage is set for a pick-up in mergers and acquisitions. Even in agriculture, attitudes are turning more positive.
Gold shone in 2024, and the sector appears poised to maintain its appeal as an investment opportunity. George Cheveley examines the factors influencing the commodity sector in the year ahead.
We see five compelling reasons for investors to revisit natural resources equities.
While US equity markets reacted favourably, commodity markets remained more cautious. Much hinges on Trump’s stance on international relations – including towards Iran, Russia, China – and its impact on the global economy and, consequently, global commodity prices.
The prospects for oil appear positive on a five-year view, not least because US shale supply could plateau in the next few years. However, investors will need to be careful in 2025, because demand worries and supply growth add up to a bearish outlook. As portfolio manager Paul Gooden explains, there are still opportunities, but active management will be key.
Gold is at record highs. Yet attendance at the biggest annual gold-industry conference was well below average and the mood was subdued. This says something useful about the mindset in the gold sector – and what investors can expect from here.
Gold has defied rising bond yields to trade in a range rarely seen before. Is there more in the price than a ‘war premium’? There are reasons to think so. The precious metal may be able to sustain higher prices.
Macro worries have created a useful entry point into natural resources equities. This part of the stock market is often misunderstood, presenting value opportunities for selective investors.
2023 has been a year of defining change, with much of the world adapting to higher interest rates. See below for key takeaways from the sessions with our portfolio managers.
Market and portfolio insights, webinars & events curated from across our investment teams to help you steer through changing investment landscapes.
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