The fund will enable investors to capitalise on the demand for gold and other metals through investment in junior mining companies – the heavyweights of the future.
The fund will mainly invest in small and mid cap mining companies, which are often under researched and have the most potential for future growth. Around 70% of the portfolio will be invested in companies mining gold and the fund will also invest in miners of other precious metals, base metals and uranium.
Until 30 September 2009 all investors will be able to buy the fund’s institutional share class, regardless of minimum investment, offering an initial charge of just 0.5% (4.75% lower than the fee for retail shares) and a 0.25% lower annual management charge.
Jim Slater, who owns over 35% of Sector Investment Managers, said today:
“We believe the price of gold is likely to continue to rise as investors seek a safe-haven investment amid fears of US dollar weakness and inflation. The divergence between mining share prices and the price of gold is the highest it has been for many years and small and mid-cap companies, in particular, should benefit from this in the next stage of the market recovery.
“A major new discovery has a disproportionate effect on the market capitalisation of smaller companies which are also more likely to be taken over as the industry continues to consolidate.”
Angelos Damaskos, Chief Executive Officer of Sector Investment Managers and fund adviser to Junior Mining said:
“The fund will focus on companies which already have significant resources, with active drilling programmes. We will apply our skills and proven track record in analysing and identifying smaller capitalisation companies with the potential to outperform. Investments will be diversified across the most promising areas for future discoveries but will avoid unsafe political territories where there is a risk of expropriation or armed conflict.”
The offer period runs from 1 to 7 September and trading will commence on 8 September 2009. The Junior Mining fund will be marketed to institutional and retail investors, high net worth individuals, intermediaries and family offices.
Angelos Damaskos has 19 years experience in natural resources including over two years with Galahad Gold plc. He is also adviser to the Junior Oils Trust, which invests in small to medium oil exploration and production companies, and has consistently outperformed its benchmark, the FTSE 350 oil and gas index, as well as the price of crude oil.
For more information investors should visit www.juniormining.co.uk.
Notes to editors:
Minimum investment: £1,000 lump sum or £100 per month.
Launch price, until 7 September 2009: £1.
Charges:
Until 30 September all investors can invest in the institutional share class. From 1 October 2009 the charges will be as follows:
Retail ‘C’ Shares (£1,000-£50,000)
Institutional ‘I’ Shares (£50,000+) – 0.5% initial, 1.5% annual
Commission is available, advisers should contact ir@sectorinvestments.com for details.
Sector Investment Managers is an independent resources focused investment management company authorised and regulated by the FSA. It advises an additional two open-ended fund products, the Junior Oils Trust and the Junior Energy Fund, as well as providing advice and management for segregated accounts.
Angelos Damaskos founded Sector Investment Managers in 2004 to provide investors with access to the super-cycle in energy and commodities.
Contact: Sally Moore/Jamie Murray, Broadgate
