Yes, though we expect natural resources equities (NREs) to continue to benefit from the rebalancing of supply and demand occurring in oil markets, irrespective of whether the 14-nation cartel follows through on its provisional deal to limit production.
No, but we do expect UK commercial property prices to re-rate to a lower level as investors grapple with the consequences of the Brexit vote.
US REIT valuations are elevated, but the fundamental and technical picture does not support the underweights that many investors likely, though unintentionally, have.
Oil prices have benefited from a number of developments in recent weeks, including fresh data indicating declining production and healthy consumption, weakness in the US dollar, and news of supply-cap discussions between select OPEC members and Russia.
The strong headwinds facing the commodity sector limit our conviction that current prices will translate into reasonable total returns.
MLPs have had a volatile few months and yields have skyrocketed; investors with a long-term time horizon should find the sector appealing.
Unit prices have sold off in sympathy with energy-related assets, but higher yields and reasonable fundamentals should translate into strong returns in the long term.