Top-performing Natural Resources Fund To Stem Inflows

UK boutique Bakersteel is to soft close part of the top-performing natural resources fund over the year to the end of February 2020, after its period of outperformance.

The Bakersteel Electrum fund, which is managed by Mark Burridge, was originally launched in 2005 but has risen to the top of the Equity – Natural Resources sector on a 12-month basis. It has $26.6m in assets under management.

This strategy is designed to create exposure to rising demand for ‘future facing’ and precious metals through equity bets. Bakersteel defined ‘future facing’ metals as those used in technologies that make the world greener, cleaner and safer.

This can include, but is not limited to, cobalt, copper, graphite, lithium, nickel, platinum group metals, rare earths, vanadium and zinc. Each of these metals has differing demand drivers and supply elasticities, but the key theme for all ‘future facing’ metals is one of enormous growth potential over the next 10 years.

In a statement to shareholders, the company said: Following a successful first year of performance and growth, the seeding ‘S Class’ of the Electrum Fund will be closing to new investment on 30 April 2020. Following the S Class closure a range of other share classes remain open to new investment.’

On a 12 month basis to February 2020, the Bakersteel Electrum fund returned 17.3% in US dollar terms over the average fund return, out of the 126 funds in operation, which was a loss of 14%.