Global
Natural Resources

Top-down commodity analysis fused with bottom-up, fundamental research

Strategy Objective

The strategy seeks long-term growth by investing in companies that own, explore, mine, process, and develop natural resource commodities.
 

Approach

  • Combines top-down commodity analysis with bottom-up, fundamental research to uncover growing companies at a reasonable price to future earnings
  • Flexible investment approach to pursue the most attractive long-term opportunities across all sub-sectors of the universe
  • We look at potential supply / demand imbalances over an extended 12-18 month horizon and question exposure to commodities where we believe future earnings strength is under-appreciated by the market
  • We focus on long-term, secular opportunities and tend to have a longer time horizon versus peers, often looking out four or more years depending on the environment
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Differentiating Characteristics

Benchmark Agnostic

  • Not constrained by market-cap, geography, sub-sector, or benchmark

Expertise and Experience Identifying Early-Stage Resource Plays

  • We believe our experience in the space and the ability to leverage our existing industry relationships along with access to company management helps us to identify early-stage resource plays worldwide

Long-Term Driven

  • Our flexible approach is driven by long-term views rather than short-term tactical considerations in order to pursue the most attractive opportunities

In-Depth Specialization and Experience across the entire Energy Value Chain

  • Draws upon specialized and dedicated research analysts who focus specifically on companies across the upstream, midstream, and downstream energy value chain

Key Characteristics

Benchmark: Global Natural Resources Custom Index
Number of Holdings: Typically 75 – 125
Strategy Inception: August 1991
Market Cap: All-Cap
Turnover: 20 – 35% under normal market conditions

Investment Team

Our Natural Resources team is comprised of two portfolio manager/analysts and one dedicated analyst. Additionally, the team is supported by the sharing of intellectual capital and close interaction across Jennison’s energy value chain research approach, which consists of specialized analysts that focus on those specific sectors/industries within the upstream, midstream, and downstream energy infrastructure space.

The close interaction of portfolio managers and analysts provides a forum in which investment ideas and conviction in specific securities are born. The extensive knowledge and experience investing within these specialized industries contributes to our deep understanding across the entire energy value chain and we believe can provide us a competitive advantage in constructing specialty sector-oriented portfolios on behalf of our clients.

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.