Ninety One Enhanced Natural Resources J

Invests globally in commodities and natural resources equities.

  • 140.37p
    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.

  • -
    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?

  • 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!

  • 0.75%
    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).

  • 0.80%
    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.

  • 1.90%
    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 20 January 2021, fund data last updated 02 January 2020

The fund targets long-term capital growth with a relatively low volatility by investing primarily in commodity and resource-related equities. It can also invest directly in commodities themselves via derivatives. An unusual feature of this fund is that it can take both long and short positions (make money from price falls). It is primarily a long only fund (typical market exposure is 60-80%), but the shorting tools allow the managers to take tactical positions and manage volatility. Finding an appropriate benchmark is therefore difficult.

Fund summary

Sector Specialist
Structure OEIC
Launched October, 2013
Size £45m
Yield 1.90%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.80%

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Investment process

The managers aim to build a diversified portfolio with exposure to core macro-economic, sub-sector and company views. They start by analysing the supply and demand fundamentals for each commodity to establish where the main structural overweights in the portfolio lie. Then they use quantitative screens that seek to establish which companies are likely to benefit the most from this trend and technical analysis on each commodity individually as well as individual, in-depth company analysis. Finally the managers seek to construct a balanced portfolio that has a number of different exposures within it. The fund can invest across the entire spectrum of resource equities. The managers will also use commodity derivatives – this will be mainly to manage risk, reduce volatility or benefit where they simply have a bearish view on a company/commodity, rather than to increase risk or leverage.

The fund’s combination of attributes is attractive compared to other funds in relatively difficult commodity market conditions. Having the power to invest in both equities and commodities and to take both long and short exposure means the managers can attempt to control volatility in what is a high risk asset class. As a result it is our fund of choice within the limited commodities universe.

Manager research

Average monthly relative returns

  • 16/17 1.67%
  • 17/18 0.78%
  • 18/19 -0.61%
  • 19/20 1.04%
  • 20/21 1.21%

Bestinvest MRI

  • 3 years 0.55%
  • 5 years 0.82%
  • Career 0.73%
  • 3 years 78.50%
  • 5 years 94.20%
  • Career 93.80%

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

Tom Nelson / George Cheveley

Nelson joined Investec Asset Management in 2012. Prior to this, Nelson spent seven years at Guinness Asset Management. He holds the UKSIP Level 3 Certificate in Investment Management and an MA in Modern Languages (French and German) from the University of Oxford. Cheveley joined Investec Asset Management in 2007. Prior to this, he was at BHP Billiton for three years and CRU (Commodities Research Unit) for eight years. Cheveley began his career in 1990 in operations at British Steel Strip Products. He graduated from the University of Oxford in 1989 with an honours degree in Classics and in 1995 was awarded an MBA from Warwick University.

Track record

Tom Nelson / George Cheveley has 5.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.73%. During the worst period of relative performance (from December 2017 - November 2018) there was a decline of 12% relative to the index. The worst absolute loss has been 25%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 94%.

Periods of worst performance

Absolute -25.00% (July 2019 - March 2020)
Relative -12.00% (December 2017 - November 2018)

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

9.3% Bhp Group Plc
5.4% Agnico Eagle Mines
5.2% Rio Tinto
4.7% Total Se
3.7% Deere & Co
3.5% Bp
3.1% Kirkland Lake Gold Inc
2.9% Newmont Corp
2.4% Endeavour Mining Corp
2.4% Kazax Minerals Inc
Source: Trustnet

Sector breakdown

Gold 20.00%
Mineral Extraction 18.00%
Oil & Gas - Integrated 12.00%
Oil & Gas Exploration & Production 9.00%
Foods 7.00%
Chemicals 5.00%
Forest Products 5.00%
Others 5.00%
Fishery, Agriculture & Forestry 4.00%
Oil & Gas Equipment & Services 4.00%

Portfolio

30-50 stocks, max 100. Official benchmark is the MSCI All Country (AC) World Index Select Natural Resources Capped Index

Constraints

Net exposure 60-80%. Super-sector weights: Max 80% in Energy or Metals & Mining and 60% Agriculture and Softs; Sub-sector weights: Max 20% in any one Commodity or resource type; Country weights: Max 50% in any one country; Market Capitalisation: Minimum $100m. Max 10% in any one stock or derivative.

Key Investor Information

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