JPM Natural Resources A

Invests globally in natural resources and energy companies.

  • 36.37p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 539.30p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.25% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.68%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.50%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 25 September 2020, fund data last updated 26 November 2014

The fund aims to produce long term capital growth by primarily investing in companies located globally that are engaged in producing and marketing commodities, many of which are in the early stages of exploration. Its benchmark is the Euromoney Gold, Mining and Energy Index, but it has a bias towards mid/ small caps. It is the longest established open ended collective fund specialising in natural resources, having been initiated in 1965. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

Fund summary

Sector Specialist
Structure OEIC
Launched June, 1965
Size £515m
Yield 2.50%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 4.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.68%

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Investment process

The objective is to achieve above average capital growth over the long term through a portfolio of shares in what the management team 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. As such, the benchmark is a point of reference only and the fund can materially deviate from it. The manager has a well resourced commodity team that can also use JPM's worldwide analyst network to find new stock ideas.

New manager Neil Gregson (appointed in 2012) has rationalised the portfolio, cutting down the long tail of small holdings and in doing so reduced the overall list to 130 stocks (from 250). However, the fund’s basic philosophy remains unchanged. This is a “traditional” resources fund, equity based, long only and ungeared. It has a material small cap bias, which has been unfavourable in the recent commodity/ miner recession and is likely to remain so in the near future.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 -0.40%
  • 17/18 0.24%
  • 18/19 0.32%
  • 19/20 -0.23%

Bestinvest MRI

  • 3 years 0.11%
  • 5 years 0.00%
  • Career -0.13%
  • 3 years 50.00%
  • 5 years 0.00%
  • Career 39.70%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Neil Gregson

Gregson is a member of the JPM team responsible for global natural resources mandates. He joined JPM in September 2010 from CQS Asset Management where he was a Senior Portfolio Manager, with particular focus on the natural resources sector. Prior to this, he was the head of Emerging Markets at Credit Suisse AM where he managed gold and resource equity funds. Gregson began his career holding various positions at mining and resource companies, including a role as a mining investment analyst at South African company Gold Fields and working as a mining engineer with Anglo American. Gregson holds a BSc in Mining Engineering from Nottingham University.

Track record

Neil Gregson has 4.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.13%. During the worst period of relative performance (from May 2001 - May 2002) there was a decline of 21% relative to the index. The worst absolute loss has been 23%.

Periods of worst performance

Absolute -23.00% (May 2001 - September 2001)
Relative -21.00% (May 2001 - May 2002)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

8.4% Bhp Group Ltd
7.7% Rio Tinto
6% Newmont Corp
5.3% Chevron Corp
3.5% Agnico Eagle Mines
3.4% Barrick Gold Corp
3.3% Total Se
3.3% Franco Nevada Corp
2.7% Freeport-Mcmoran Inc
2.6% Anglogold Ashanti
Source: Trustnet

Sector breakdown

Precious Metals & Stones 28.00%
Mineral Extraction 20.00%
Oil & Gas - Integrated 18.00%
Other Metals 11.00%
Oil & Gas Exploration & Production 11.00%
Oil & Gas Equipment & Services 6.00%
Oil & Gas Equipment & Services 5.00%
Money Market 1.00%

Portfolio

100-250 stocks. There are no formal risk controls, but there is an awareness of sector bets, with a neutral position considered as:- 30% Energy, 30% Gold & Precious Metals, 30% Base Metals and 10% Other.

Constraints

Stock weightings are unlikely to exceed 5% although this is at the manager's discretion. Min holding=0.20%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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