Investing in firms that make up "the building blocks of the economy", Durham graduate Graham French has thought of more than one way to play the commodities boom in his M&G Global Basics fund.
French has a bias, says Citywire, for large liquid companies and those that can grow independently of the economic environment. He believes platinum and coal will provide the best investment opportunities in the coming years, because suppliers and producers of these raw materials can't keep up with demand from emerging economies.
"This situation creates significant potential for certain resource companies to earn premium returns. It also means the future of the industry is in the hands of those suppliers," he tells CNBC, citing US coal producer Peabody as one group in the portfolio that has done well from this supply/demand imbalance.
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But he hasn't restricted himself to base materials, believing that as countries get richer, consumers will also spend more on food and goods. Holdings include Pilgrim's Pride, the biggest chicken farmer in the US; and Copper Companies, a contact lens maker that should benefit from rising cases of myopia in the developing world.
Up 16.7% since the start of the year, against an average 6.75% for global growth funds, "the investment record has been extremely good and its greater flexibility over a commodity fund makes it an interesting bet for any portfolio", Mark Dampier of Hargreaves Lansdowne tells the Daily Mail.
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M&G Global Basics fund's top ten holdings
Name of holding, % of assets
Lonmin, 3.8%
Eramet, 3.8%
EADS, 3.6%
Sims Group Ltd, 3.6%
Tullow Oil Plc, 3.5%
Pilgrim's Pride Corp, 3.4%
Bluescope Steel, 3.37%
FMC Corp, 2.8%
Constellation Brands Inc, 2.7%
Johnson Matthey, 2.6%
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