Provide superior absolute returns for investors by taking a portfolio approach and investing in growth-orientated natural resource companies. We look to limit the dependence on commodity price cycles by adopting an active disciplined investment approach.

We do not believe in relative performance versus an index and our portfolios are not constrained by steadfastly following benchmarks.

Whilst we firmly believe that the world is in the infancy of a major structural change in the pricing of natural resources with the emergence of China, India, Asia and the other developing BRIC economies, we also recognise that the “stronger for longer” commodities investment theme will have its pullbacks and corrections. We embrace these opportunities and will use cash tactically and derivative instruments to hedge NAV when we feel stocks in the portfolio have overshot their valuations.

We are predominantly bottom-up orientated with a 70:30 approach in favour of stock picking. The macro-economic environment is still an important focus in our investment decision making process and our top-down analysis allows us to actively invest in the more favourable sub-sectors within the natural resources sector.

Investment Style/Approach

We focus mainly on 3 types of companies within the natural resources investment universe:

Undervalued emerging producers. These are companies that have emerged as part of the supply side response to higher commodity prices recently. After many years of exploration, scoping/feasibility studies, equity capital raisings and/or arranging project debt finance they are nearing commissioning to begin producing their particular commodity into the market. The time frame for getting projects from the discovery of a potentially economic mineral deposit to full production can take 5-10 years. These companies are likely to be re-rated by the investment market as cash flow stories with much of the speculative exploration/operational risk taken out of the investment equation.

Established producers. These are companies with obvious long-life assets and associated forecasted cash flows that also have plenty of favourable "brownfields" (or nearby) exploration upside potential.

Exciting exploration plays. These are companies engaged mainly in "greenfields" exploration where we place great emphasis on the quality and experience of the management leading the exploration as well as evaluate the potential of the ground being explored.

Our stock selection process rejects ex-growth companies without any obvious exploration/ M&A potential and companies that are exposed to sub-sectors within the natural resources sector that operate in an unfavourable macro-environment according to our top-down analysis