Why invest in Natural Resource Strategies?
KBI Global Investors has been managing global, long-only, open-ended Natural Resource Strategies since 2000 and we currently offer the following comprehensive suite of products in that space:
- KBIGI Water Strategy
- KBIGI Energy Solutions Strategy
- KBIGI Agribusiness Strategy
- KBIGI Global Resource Solutions Strategy
We are high conviction, fundamental investors and believe that long term return opportunities are being driven by the need to provide solutions to meet the world’s growing need for water, food and clean energy. We also believe that specialist active management is best placed to:
- identify the companies positioned to provide the winning solutions
- access these opportunities across the investment cycle at attractive valuations
KBIGI's Natural Resource Strategies provide investors with the opportunity to achieve strong long term returns and potential portfolio diversification from investing in companies providing solutions to our greatest global resource challenges. There are compelling investment opportunities in companies providing solutions to resource scarcity across water, food and energy driven by 5 long term trends.
- Inadequate supply of water, cleaner energy and arable land for farming
- Increasing demand for resources driven by population growth, industrialization and urbanization
- Increasing regulation and government support
- Increasing investment in Infrastructure to facilitate provision and management of resources
- Increasing investment in technology to optimize inputs and facilitate the more efficient use of resources
We believe that by harnessing the long-term growth opportunities that exist in companies that are focused on addressing and providing solutions to these important global problems, investors benefit from the return opportunities that are present from an investment perspective. The performance objective of the Natural Resource Strategies is 3% - 5% outperformance over the MSCI World Index over rolling 3 and 5 year periods
Investors allocating to our products have the opportunity to bring new sources of alpha to their portfolios through an allocation to these strategies. Their returns are driven by investment in companies providing solutions to resource scarcity challenges. The primary rationale for investors to include an allocation to Natural Resource strategies is alpha generation. They have a place in a global equity portfolio as a source of long term growth and/or as a part of a satellite allocation in a core satellite approach. Additionally, a closer look at the drivers of growth for natural resource stocks highlights specific investment characteristics that investors are looking for as liquid components of different alternatives allocations including natural resources, infrastructure and real assets. The liquidity of our publicly traded equity strategies provides an advantage and/or a complement to private equity strategies which have lock up periods and liquidity restriction.
All of our natural resource strategies use the same successful investment process and harness the long term secular drivers which reinforce the strategies as a long term source of secular alpha.
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