Australian-based global natural resource fund manager, 90 West Asset Management Ltd (90 West), today announced that its funds would now be available to a wider group of investors, thanks to a positive rating from research house van Eyk and the inclusion of its two funds on the Linear Asset Management platform.
David Whitten, Executive Chairman and the prime portfolio manager, said the developments came at an important time as investors gain confidence in equity markets, with global natural resources among the most attractive opportunities.
“After falling through most of 2011 and the initial five months of 2012, we have seen a very strong recovery in global natural resource equities. Since bottoming at the end of May 2012, the S&P Global Natural Resources Index has risen by 20.5 per cent in USD (+12.1% in AUD). The Agricultural Sector has led the way, rising more than 25 per cent (+16.7% in AUD), followed by Energy up 19.3 per cent (+11% in AUD) and Mining up 12.7 per cent (+4.8% in AUD).
“Our modest one per cent cash position at quarter end 2012, reflects the attractive investment opportunity set and the favorable longer-term positive outlook for the global natural resource equity sector. Although 90 West does not predict short-term natural resource market or commodity price movements, we currently see attractive natural resource valuations combined with a supportive long-term macro environment for many global natural resources companies,” Mr Whitten said.
“In our view, some of the strongest opportunities will result from cheaper energy prices in the US, a rebound in US housing – leading to improved demand for timber; and gold, as we see high gold prices but relatively low valuation of gold companies.”
Clive Landale, Managing Director, 90 West, said the developments would help ensure the funds are available to a greater number of financial advisers and their clients.
“The favourable van Eyk rating of the 90 West Global Natural Resources Fund is testament to the experience of our portfolio manager David Whitten combined with the strength of the wider team. This rating will help make the Fund more accessible to the many dealer groups and advisers, who want to capture the investment potential this sector offers.
Additionally, Mr Landale said both the Global Natural Resources Fund (a long-only fund) and the Global Basic Materials Fund (long-short) would now also be available via the Linear Asset Management investment platform.
“Previously, the Global Basic Materials Fund was only available to wholesale investors, with a minimum investment of $100,000. However, both funds will now be available to smaller investors via Linear, with a minimum investment set at $10,000.”
CEO of Linear Asset Management, Chris Hipkin, said the funds had been included on the platform in expectation of growing investor demand for specialist resources managers.
“Recent reports from the US show a turn around in inflows into equity funds, with $22 billion invested into equity funds in the week ending 9 January 2013. This was the second highest inflows for any week since 1996*. These results have been repeated in following weeks. We believe this positive sentiment will lead to stronger markets globally, which will have a flow on effect to sentiment and markets in Australia. We know that natural resources offer very favourable investment characteristics and therefore are including these funds in anticipation of growing investor demand.”
