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Institutional mandate highlights confidence in natural resource equities

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Australian-based global natural resource fund manager 90 West Asset Management Ltd (90 West) has announced the commencement of a $100 million equity mandate from an undisclosed industry superannuation fund.

According to 90 West's managing director Clive Landale, the equity mandate is an important endorsement of the investment opportunity global resources offer as well as the strength of 90 West's investment team and process.

"For a relatively new firm such as ours this mandate from an established industry superannuation institution is testament to the great deal of work that has occurred over the past 12 months. 

"Our team had been working to ensure that 90 West has exceptional portfolio management and compliance infrastructure, ready to meet the demands of institutional as well as retail investors, Mr Landale said.

David Whitten, 90 West's executive chairman and the prime portfolio manager for the mandate, said the opportunities offered by global natural resources are becoming more widely recognised and the mandate highlighted expanding interest in this class.

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"We think this time represents one of the better investment opportunities that we have seen in our combined 60+ years of investment experience," he said.

"Our favorable long-term view of the investment merits of natural resource equities remains intact.

"The long-term trends of increasing population, prosperity and urbanisation characterised by many populous Asian and other emerging countries, has led to increasing global consumption of natural resource minerals, energy and food."

Mr Whitten believes these long-term demand drivers, combined with constrained supply for some commodities, provide a favourable investment climate, particularly in selective, high quality agriculture, energy and mining shares.