AXA IM launches Natural Resources fund

AXA IM has launched the AXA WF Framlington Natural Resources fund, a global equity offering managed by Sebastien Lagarde and Olivier Eugene.

The offshore fund invests in companies operating across the value chain in energy, industrial metals, precious metals and soft commodities markets.

The actively managed portfolio will hold between 70 and 90 stocks typically, and is aiming to deliver long-term capital growth.

Lagarde and Eugene, who also run the $130m AWF Framlington Hybrid Resources and $270m Framlington Junior Energy funds, will have the ability to invest in small-, mid- and large-cap companies in the new portfolio. They will select companies based on bottom-up analysis combined with a macroeconomic view on commodity prices.

The fund is not currently registered for sale in any jurisdiction other than Luxembourg but AXA said it is considering registration across a number of European countries.

"The demand for commodities is ever increasing, spurred on by growth in emerging markets. The supply of commodities is having a hard time adjusting in response to this demand as basic resources become more difficult to access," said Lagarde.

The launch comes following a sharp sell off in commodities which has seen prices fall across the energy, metals and commodity markets.

Established funds in the commodities space have also been dragged down as equity markets continue to see the sharpest correction for two years.

Funds such as the £9.8bn BlackRock World Mining fund, and the £521m Barring Global Resources fund, are down 20.8% and 12.7% respectively in the last three months.