RobecoSAM: Natural resource scarcity presents opportunities

As the oil price falls below $80 per barrel and other commodity markets also struggle with limited supply, investors are steering clear of resources funds, but some managers see these conditions as an investment opportunity.

Pieter Busscher (pictured), manager of the £143m RobecoSAM Smart Materials fund, told delegates at Investment Week’s Funds to Watch conference why this resource scarcity could be an advantage for investors. Why should investors consider taking advantage of resource scarcity rather than a traditional resources fund? The traditional approach is to invest directly in commodities or commodity-related stocks. This is based on the assumption that with limited supply and increasing demand, the price of commodities should rise steadily. But this approach is increasingly challenged by major...