Bestinvest says
The fund was recently inherited by Neil Gregson who takes over from Ian Henderson who had managed the fund since 1992. The pair have worked together since 2010 and Henderson is staying on until March 2013. The fund is unusual, especially given its size, in that it invests primarily in smaller companies. The fund therefore has over 200 holdings. This fund structure is likely to remain. Over the long term this has proven to have been a profitable strategy as these companies have significant potential to increase their share prices but are individually more risky. The process is dependent on the stock picking ability of the manager and expertise of the research team.
The objective is to achieve above average capital growth over the long term through a portfolio of shares in what the manager considers to be 'the great investment theme of our age': the industrialisation of China, Brazil, Russia and India.
The universe is broadly divided into energy, base metals, precious metals and alternative energy sources. Small and medium sized companies will be targeted with "special situation" qualities and the manager will hold a diversified portfolio to minimise downside risk. The macro-economic environment and political considerations, in an industry subject to political pressures, will also form an important part of the decision making process.
The manager has a well resourced commodity team that also benefits from JPM's worldwide analyst network to find new stock ideas. In this large, diversified global market place this is of significant benefit.