View more on these topics

Experience key for JPM global mining

JP Morgan Asset Management is drawing on its natural resources experience to launch the JPM global mining fund.

The fund invests globally in the stocks of 50 to 100 companies involved in mining or mining related activities. It will invest in firms that mine base and precious metals but not in firms involved in the production or extraction of oil and gas.. It will invest in companies of any size that can grow their reserves and production and will also include undervalued mining firms.

Fund manager Neil Gregson joined the company in September 2010 from CQS Asset Management. He is a qualified mining engineer with over 27 years’ industry experience, including almost 20 years at Credit Suisse where he was head of emerging markets, managing gold and natural resources funds. When running the JPM fund, he will use research from the firm’s natural resources team, which identifies undervalued mining assets through 1,000 company meetings a year.

JPMorgan says opportunities in the mining sector are driven by supply and demand issues. Regions such as China need commodities to grow, but labour and skill shortages, along with rising costs of extracting the raw materials, has led to limited supply that is unable to meet rising demand. These factors have led the mining sector to perform well in the last two years, which could lead advisers to feel this fund is coming to the market too late. However, JPM does not believe it has run out of steam and says there are still good reasons to invest.

Commodity prices can be highly volatile and investing only in the minor sector is a narrow focus, so this fund would suit investors who can accept higher risks in return for potentially high returns.  However, IFAs and their clients who want an open-ended mining fund rather than an investment trust such as BlackRock world mining trust may see the experienced team as a comfort factor.

Recommended

48

FSA wages rise 22% in five years

Average salaries for FSA staff have risen 22 per cent over the last five years to £51,232. Figures from the regulator published in the Financial Times show that excluding directors FSA staff were paid an average of £51,232 for the year to March 2010, up 6 per cent from 2009. Senior management wages have risen […]

5

FSA could intervene in DIFs market

The FSA is monitoring the distributor influenced funds market and says it will intervene if standards do not improve. The regulator estimates that there are at least 40 firms offering DIFs to their customers, with around £2bn of assets under management in DIFs in the UK, involving the assets of over 10,000 investors. In its […]

AMI says advice should be default for most borrowers

The Association of Mortgage Intermediaries is calling for mortgage advice to be mandatory for most consumers, particularly first-time buyers, credit- impaired borrowers and those borrowing into retirement. Last November, the FSA published an MMR consultation paper on distribution and disclosure and asked if it should continue to allow consumers to get a mortgage without advice. […]

How can I help develop my professional connections?

Graeme Ballantyne, business consultancy manager, looks at how you can maximise the opportunities through your professional connections As we move through the summer months it’s perhaps a good time to pause and reflect on whether the plans you’ve made for your business are bearing fruit. One area we at PruConsulting know many advisers have been […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment