Ian Henderson believes the current outlook for commodities is better than it was last year and this will continue through the year.
He says demand for commodities in 2010 will remain robust supported by China's strong GDP growth accompanied by growth from other emerging markets.
According to Henderson, manager of the £2.1bn Natural Resources fund, this demand will remain no matter what happens in Europe because of the growing inter-regional trade.
He believes commodity prices are better underpinned today on a supply/demand dynamic than in 2009, and valuations are not expensive.
Henderson also forecasts a V-shaped recovery, with property prices picking up in the US to provide a feel-good factor. Henderson says that historically he has never invested in the steel industry, but now it accounts for 2.8% of his fund in expectation of a recovery.
He acknowledges that the proposed miner tax in Australia and similar measures around the globe could impact on new development, needed to meet global demand, but he says the market pull-back as a result represents a buying opportunity, not a selling signal.
