Investors are shunning the mining sector, data from Thomson Reuters shows, as they struggle to forget the string of multi-billion dollar takeovers and expensive development projects that left them empty handed. 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. The fund has been investing in companies that have a strong focus on renewable energy or clean technology, such as wind farms and solar panels. 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. The fund has been investing in companies that have a strong focus on renewable energy or clean technology, such as wind farms and solar panels. 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.