Portfolio managers usually make investments underweight when they believe they will underperform compared to the other sectors in which they invest. Sector-specific Investors continue to be wary of the mining industry after years of "not returning cash to shareholders and making poor capital allocation decisions", according to portfolio manager Hanre Rossouw . Data from Thomson Reuters revealed six UK -based natural resource funds fell 74% last year , against an increase of 74% in 2016 , while assets under management in 2017 reached £ 5.3bn ($ 3.81bn ), compared to 2016 £ 3.81bn . In addition to the fear of investing in an industry with high upfront capital risk, some investors are leery about backing an sector prone to booms and bust.
Sector-specific Investors continue to be wary of the mining industry after years of "not returning cash to shareholders and making poor capital allocation decisions", according to portfolio manager Hanre Rossouw . Data from Thomson Reuters revealed six UK -based natural resource funds fell 74% last year , against an increase of 74% in 2016 , while assets under management in 2017 reached £ 5.3bn ($ 3.81bn ), compared to 2016 £ 3.81bn . In addition to the fear of investing in an industry with high upfront capital risk, some investors are leery about backing an sector prone to booms and bust.