|
Laxman Pai, Opalesque Asia: Many investors are dissatisfied with the performance of the natural resources asset class in recent months and, for the second consecutive year, the proportion looking to invest more capital in the asset class over the next 12 months has fallen, said Preqin.
Although high returns are not the primary motivation for a natural resources allocation, a notable 28% of investors surveyed by Preqin plan to invest less capital in the year ahead.
In contrast to other private capital asset classes such as private equity, real estate, and infrastructure, where asset valuations are the biggest concern, commodity market volatility is seen as the greatest challenge to return generation among natural resources investors.
Energy funds focusing on upstream investments are the most appealing to natural resources investors in the current climate.
Water and agriculture/farmland funds follow, cited by 42% and 31% of investors respectively as presenting the best opportunities at present.
While the US remains the most attractive region within developed markets for natural resources investors (as cited by 68%), Canada (39%) and Australia & New Zealand (29%) are also presenting favourable opportunities.
This contrasts with other asset classes, where Western Europe (excluding the UK) features prominently, reflecting how opportunities in natural resources are inherently different.
Similarly, the emerging markets that are presenting the...................... To view our full article Click here
|
RSS
