The manager of the UK-based PSigma Growth Fund says he is holding to a cautious overall stance against an uncertain economic backdrop, looking to tap into emerging market strength via sectors such as energy, telecoms, security, infrastructure and education.

“Nothing has happened in recent months to change our view that long-term global economic growth will be driven, to a large extent, by population growth. The UN population forecasts predict that the current global population of 6.8 billion will grow to 8-10.5 billion by 2050, with most of that growth being in Africa and Asia,” said Neil Cumming in an outlook for 2011.

The fund is a modest one and holds £5.2 million (around $8.1 million) of assets, according to the PSigma website. Cummings will hope his stance allows performance to improve and make up on lost ground. Since its launch in September 2007 – when markets were already starting to show strains, the fund has declined by 14.5 per cent. In the one-year period to the end of October this year, it has risen by 11 per cent, however, but is still slightly lagging the FTSE All-Share.

Energy stocks make up the biggest share of the fund’s holdings, at just over 31 per cent. “In this growing world, the demand for energy is on a long term growth trend,” he said.

Holdings in the energy sector include BP (6.8 per cent), Royal Dutch Shell "B" (4.1 per cent) and BG (6.4 per cent). Among smaller firms in this bracket are Rockhopper Exploration, Valiant Petroleum and Premier Oil. On the mining and resources side, the fund holds BHP Billiton, Xstrata and African Barrick Gold.

The second-largest sector holding for the PSigma fund is education and telecoms, with telecoms giant Vodafone accounting for 6.4 per cent, BT at 1.1 per cent and Inmarsat at 1.3 per cent.

The third largest theme, at 16.1 per cent, is environment and health. GlaxoSmithKline makes up 6.7 per cent.