Bestinvest says
The manager, Evy Hambro, has a significant track record in the sector and utilises BlackRock's extensive commodity research team of which he is also a director. The fund is very large and it is therefore debatable as to what extent Hambro is able to generate significant returns from smaller companies and rotate the fund quickly, nevertheless this fund is a good core holding for clients who want commodity exposure.
The fund is looking to achieve capital growth by investing in companies that offer exposure to the gold price within the risk levels that the manager believes are acceptable. The fund mainly invests in existing gold mining operators with some exposure to other precious metal miners. The manager looks for companies that have the potential to grow while paying attention to the company valuations. These companies can be existing operations or green field exploration companies, while exposure to pure exploration plays is usually kept low.