Fund of the week: the manager who spots what others miss

“Consistency is a vital ingredient for the long-term success of a fund, but genuine consistency is hard to achieve,” says Tim Cockerill, head of research at adviser Rowan & Co in What Investment. Hence Ian Henderson’s performance as manager of JP Morgan’s Natural Resources fund should be lauded.

As the runner up in the What Investment 2006 award for the most consistent unit trust, Henderson has been recognised as the most consistent fund manager in the specialist commodity sector. With 25 years of experience, he’s steadily turned £1,000 invested in the fund in June 2001 into £4,045 today, says Citywire. One of only 12 managers out of 151 to maintain his Citywire A rating over the past 79 months, he remains a member of their ‘diligent dozen’.

With a slight preference for value-based opportunities, says Citywire, Henderson believes that recent falls in the commodities sector represent an excellent buying opportunity for those who are in it for the long haul. Writing in Investment Adviser, he says: “For long-term investors, the compelling combination of taut supply and rising demand is made more compelling by the fact that stock valuations in the sector remain highly attractive.”

Although the fund’s performance is dependent on the resources sector, “Henderson has a good track record of consistently outperforming the benchmark index”, says BestInvest’s Justin Modray in What Investment.
“He manages to achieve this through using his extensive knowledge and experience to unearth companies that have gone unnoticed by global markets and ‘special situations’.”

Telephone: 020-7742 4000, www.jpmorgan.com

JP Morgan Natural Resources top ten holdings

Name of holding                   % of assets

First Quantum Minerals          2.60
XSTRATA                            2.40
Bema Gold                           1.90
Zinifex                                1.70
Teck Cominco                      1.60
First Calgary Petroleums        1.40
BHP Billiton                          1.40
Fortescue Metals Group         1.30
Rio Tinto                             1.30
Lundin Mining                       1.20


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