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Biggest and Best Performing Commodity Funds

Commodities have recorded strong gains after reaching a decade low back in January 2016, prompting a renewed interest in the sector

Fatima Khizou 23 January, 2017 | 8:07AM

3 Largest Commodity Funds

The BGF World Mining fund has a Morningstar Analyst Rating of Silver and has been managed by Evy Hambro since its launch in 1997. Hambro is a seasoned mining investor who enjoys the support of co-manager Olivia Markham and a well-resourced team of talented analysts. Through a rigorous assessment of commodity price trends over the long term and company analysis, the management team seeks to identify established, high quality companies that they believe are undervalued by the market. The offering continues to dominate the mining space despite the outflows experienced in the past five years.

The Silver rated First State Global Resources fund is run by one of the most well-resourced and experienced commodity teams in the space, led by experienced manager Joanne Warner. The team takes a long-term approach and focuses on firms with strong balance sheets, high-quality reserves and at the cost curve's lower end. The quality and lower risk approach is an attractive way to get exposure to the sector.

The JP Morgan Global Natural Resources fund holds a Morningstar Analyst Rating of Bronze and is run by Neil Gregson who became lead manager in February 2012. The team aims to add value through material investments in small-cap stocks from pre-production stage/discovery to reserve definition, using a bottom-up analysis that focuses on mis-valued companies. The fund has benefited from its emphasis on riskier small companies at times.

2 Top Performing Commodity Funds

The T. Rowe Price Global Natural Resources Equity fund is amongst the strongest performers over three years and is currently run by Shawn Driscoll, who joined the group in 2006. The investment approach combines assessment of the commodity cycle, industry valuations and company fundamentals. The resulting portfolio is an all-cap offering and diversified across the commodity spectrum. This approach has delivered attractive returns over the long-term despite some shorter-term volatility.

The BGF Natural Resources Growth & Income fund was launched in April 2011 and seeks above average income from its investments. The proposition is run by a three-man management team with expertise in key commodity sub-sectors; mining, energy and agriculture and they operate a disciplined investment process that combines commodity analysis and forecasts with detailed bottom-up research.

A version of this article appeared in International Advisor magazine

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BGF Natural Resources Gr & Inc A2 USD7.98 USD0.48
BGF World Mining A236.15 USD1.01
JPM Global Natural Resources A (acc) EUR12.98 EUR0.23
T. Rowe Price Glbl Natrl Res Eq A USD7.31 USD-0.01

About Author

Fatima Khizou  is an Investment Research Analyst for Morningstar

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