New Products

Julius Baer Launches Natural Resources Fund To UK

Ilya Timofeyev, 21 October 2009

articleimage

Julius Baer International has made its Natural Resources Fund - which currently has $139 million of assets under management - available to UK investors.

The Luxembourg-domiciled Julius Baer Natural Resources Fund, which invests in companies linked with energy, metals and agriculture, is managed by three teams. They are working on a “best ideas” portfolio in these areas across themes including exploration and production, engineering and construction services, mining and fertilisers.

The fund is managed externally by Wellington Management Company, a US-based fund manager specialising in natural resources and is available on the Transact platform.

The fund has a 25 per cent weighting in agriculture, 50 per cent in energy and 25 per cent in metals. Recently, gains in construction and farm machinery sectors as well as in the metals and mining sector have contributed to the fund's performance, Julius Baer said in a statement. Year-to-date, as of 30 September 2009, the fund is up by 49.5 per cent.

“Demographics are changing globally, prosperity in emerging markets is expected to increase and urbanisation will likely continue over time. Against this background there is a high chance of growing demand for natural resources in the future. On the supply side reserves of many key commodities are finite. In addition we see problems relating to access, rising costs when it comes to exploration and production as well as a lack of infrastructure. This creates constraints on the supply side. Therefore we expect the secular trend in the commodities sector to continue,” said Dirk Kubisch, product specialist in charge of this product.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes