Preparing for regime change: The role of natural resources equities

• After a strong run for the US stock market, many global equity portfolios are concentrated by sector and style. • A dedicated allocation to natural resources equities can improve portfolio resilience, adding exposure to an underrepresented sector that can benefit from inflation, physical investment cycles and changing stock-market leadership. • Natural resources equities can mitigate vulnerability to equity market-regime shifts. The asset class has distinct performance drivers that may complement existing equity allocations. • Beyond inflation protection, natural resources equities provide...