Global Natural Resources: seeking to benefit from a world in transition

Tom Nelson provides an update on why he thinks that the Global Natural Resources Fund should benefit from the transition to a low-carbon economy.

17 Feb 2022

7 minutes

Tom Nelson
Tom Nelson provides an update on why he thinks that the Global Natural Resources Fund should benefit from the transition to a low-carbon economy.

The transition towards a low-carbon economy is creating an investment cycle across a wide range of natural resources. This could present a compelling opportunity in the years to come for active investors who are able to identify those companies that are either reducing their carbon footprint or who are facilitating net zero via key secular themes.

We believe that our Global Natural Resources Fund should benefit from this long-term structural story. Hear more from Portfolio Manager, Tom Nelson, in his latest update.

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Specific Risks

Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: 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. Commodity-related investment: Commodity prices can be extremely volatile and losses may be made. Emerging market (inc. China): 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.

General Risks

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.

Authored by

Tom Nelson
Portfolio Manager

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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