Positive outlook for agricultural commodities
20th January 2010
Ulster Bank Wealth Launches its Global Investment Themes 2010
Ulster Bank Wealth has launched its Global Investment Themes for 2010. The report details five investment themes that will shape investors’ thinking for the year ahead and explains how Irish investors can respond to the opportunities in agricultural commodities, equities and emerging markets.
Five Investment Themes for 2010
- Commodities and agricultural commodities offer attractive immediate investment opportunities.
- The outlook for global equity markets is positive but returns will be more moderate than in 2009.
- The rebalancing of global growth continues to present opportunities in emerging equities, bonds and currencies.
- Government bonds in developed markets are increasingly at risk.
- A search for “true” diversification will see a renewed focus on alternative asset classes.
The report looks ahead to 2010 and draws on economic research from RBS Coutts who predict economic growth of 2.5% for US GDP in 2010 and a return to positive economic growth in all of the major economies. It also set out the key trends that will shape Irish investors thinking in the year ahead.
‘The last twelve months have seen a dramatic shift in the outlook for the global economy. The key trends that we see for the year ahead are that global growth will continue in 2010 but it will be increasingly be rebalanced from developed to emerging economies. As the economic recovery gathers momentum speculation surrounding central bank “exit policies” will dominate investors’ minds,‘ said Alan Dunne, Investment Director, Ulster Bank Wealth.
He continued, ‘Although the large amount of spare capacity in the global economy should keep inflation in check, future inflation concerns amongst investors may rise over the year.’
The report details how each of the five investment themes will take shape throughout 2010.
“Our advice for this year is that investors should take a closer look at agricultural commodities given the strong trends underpinning this asset class. The rebalancing of global growth to emerging economies should continue to present interesting opportunities not just in emerging market equities but also emerging market currencies and emerging market government bonds. The outlook for government bonds in the developed world however is less positive and investors should also consider switching exposure to capital protected strategies, cash and corporate bonds”, said Alan Dunne.
Ulster Bank Wealth has also launched a compelling investment opportunity, ‘The 4 year Agricultural Commodities Strategy’, offering qualifying Irish investors the opportunity to generate attractive returns from exposure to agricultural commodities through the purchase of futures contracts with 100% capital protection on maturity. The minimum investment is €100k. Prospective investors should contact their Ulster Bank Wealth Manager for advice on the strategy.