LONDON (Reuters) - Sector - specific Investors continue to be wary of the mining industry after years of " not providing cash to shareholders and making poor capital allocation decisions " , according to portfolio manager Hanre Rossouw . Data from Thomson Reuters revealed 16 UK - based natural resource funds fell 2 % last year , against an increase of 74 % in 2016 , while assets under management in 2017 reached £ 3.78bn ( $ 5.3bn ) , compared to the previous year 's £ 3.81bn . In addition to the fear of investing in an industry with high upfront capital costs , some investors are leery about entering an sector prone to booms and crashes .
Sector - specific Investors continue to be wary of the mining industry after years of " not providing cash to shareholders and making poor capital allocation decisions " , according to portfolio manager Hanre Rossouw . Data from Thomson Reuters revealed 16 UK - based natural resource funds fell 2 % last year , against an increase of 74 % in 2016 , while assets under management in 2017 reached £ 3.78bn ( $ 5.3bn ) , compared to the previous year 's £ 3.81bn . In addition to the fear of investing in an industry with high upfront capital costs , some investors are leery about entering an sector prone to booms and crashes .