Barings launches global mining fund

16 January 2012 | By Rob Langston

The fund, which will launch subject to regulatory approval, will invest across the market cap spectrum and will aim for long-term capital growth investing in mining-related companies.

The new launch will also be able to invest in commodities and debt securities issued by mining and mining-related companies.

The Baring Global Mining fund is expected to have between 70 and 100 holdings in the portfolio with around two-thirds in small- and mid-cap companies.

Clive Burstow says: “With stock valuations at compelling levels and the supply of resources constrained, we believe that this is the time to invest in this multi-year investment opportunity.

“The case for global mining is exciting and continues to be driven by sustainable global demand on the one side and the instability and inadequacy of supply on the other.”

He adds: “We believe mining stocks are attractively valued at present, and with this fund we will be looking for opportunities to invest in those companies that are focused on the exploration or development of early-stage projects.

“Within the next twelve months we believe there is strong potential for earnings to re-rate as the constrained supply story ultimately supports higher commodity prices.”

Burstow rejoined Barings last year after a four-year gap away from the group, which included a stint at Blackrock where he was vice-president for analysis and investment across the mining sector. He was also a vice-president at AllianceBernstein before joining BlackRock.

Annual management charge for the fund will be 1.5%, and it will be benchmarked against the HSBC Global Mining Index. It will have a minimum investment of £2,500.

^{To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.}

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here and Follow @fundweb