Baring Global Mining Fund
as of 31/10/2017
Share Class Info
|Share Class||Class A GBP Inc|
|Accumulating / Distributing||Income|
|Share Class Inception Date||29/02/2012|
This fund closed on October 31, 2017. Please contact your advisor with any queries.
Summary fund objective
The objective of the Fund is to achieve long-term capital growth through investment in the equity and equity-related securities of mining and mining related companies.
Glossary of common investment terms
Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance.
This is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management and is by way of information only. Before investing in any product, we recommend that recipients who are not professional investors contact their financial adviser. The Key Investor Information Document (KIID) must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management.
This commentary relates to the month of September 2017- to be read in conjunction with the factsheet.
During September the fund was ahead of the performance comparator driven primarily by stock selection in copper and diversified miners. In particular our holding in copper miner Lundin Mining performed well with its exposure to both copper and nickel, which should be key beneficiaries of the growing Electric Vehicle (EV) and associated infrastructure themes. Our holding in diversified miner South32 was also a key contributor to performance this month with its more defensive cash flow generation and returns to shareholder bias making it a focus stock for investors. Elsewhere, our holdings in lithium continued to generate very strong performance for the fund as the (EV) theme continues to attract increasing interest. The main detractor to performance was in the gold sector where a combination of a stronger USD and the usual seasonal lull in the sector combined to drive our holdings lower. However, this should be temporary and we would expect them to begin to recover lost ground later in the fourth quarter of 2017.
We have made only one change to the fund in September adding a position in a new company AMG Advanced Metallurgical. AMG is a global provider of advanced compounds and alloys with a growing lithium business which will drive robust future earnings growth.
As the sector starts to focus on the outlook for 2018 we provide some of thoughts of our own about what could drive share prices in the year ahead. The key driver will be the policies that emerge from the transition of the Chinese economy into the next five year plan. We believe that a focus on the environment and in particular ‘green energy and technologies’ will emerge benefitting our positioning in copper, nickel, lithium and aluminium for example. At the same time the fortunes of the USD and the direction of interest rates globally will also be a key determinant of sector moves. We continue to see the positive investment case for the year ahead grounded in earnings upgrades and undemanding valuations, and we remain positive on the outlook for the mining sector.
The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.