JP Morgan Asset Management has launched a mining fund on the back of investor demand for a product focused on the sector as the long-term outlook for commodities remains positive.
The JPM Global Mining Fund aims to to capitalise on the compelling investment opportunities the sector offers. It will utilise the expertise of the entire JPMAM natural resources team and will invest primarily in companies engaged in mining or mining related activities anywhere in the world. It will invest in 50 – 100 stocks and will be an all cap fund.
Neil Gregson, who will be managing the fund, said: "While the mining sector has performed strongly in the last two years, there is still good reason for continued allocation to it. In fact, as a team we believe that an exposure to metals, both precious and base, remains one of the most compelling investment opportunities in 2011 and beyond.
"Our investment approach on this fund will see us focusing on companies that can achieve growth of reserves and production, while at the same time identifying undervalued mining assets which will benefit the portfolio. This is a continuation of the existing philosophy and proven stock selection process.”
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