Fund buyers review resources funds as JPMAM’s Henderson steps down

Henderson will hand reins of the fund to Neil Gregson who has worked with him for a year.

Last week’s announcement star manager Ian Henderson will be stepping down from J.P. Morgan’s £2bn Natural Resources fund has led some wealth managers to consider alternative funds.

Neil Gregson will replace Ian Henderson next year, but although Gregson has worked alongside the commodities veteran for the past 12 months, fund buyers have suggested a number of alternatives for investors looking to diversify their holdings.

Lee Robertson, CEO at wealth manager Investment Quorum, sold out of JPM Natural Resources earlier this month due to a bearish view on the commodities market as a whole.

He said if his view were to change, he would now be likely to choose Smith & Williamson’s Global Gold & Resources fund instead.

“Neil Gregson has a good track record, but if we were to add to our natural resources positions in the future, we would seriously consider the Smith & Williamson Global Gold & Resources fund. It has a much better track record over the critical three- and five-year terms than Henderson’s fund,” said Robertson.

Others were more positive on the J.P. Morgan offering. Ben Yearsley, investment manager at Hargreaves Lansdown, which has the fund in its Wealth 150 list, said the manager change was unlikely to alter the group’s view of the fund.

“There is no reason to suggest we will stop using the fund. Henderson’s departure was not a surprise, but at the same time we will be meeting with Gregson in a few weeks to discuss his plans,” he said.

Darius McDermott, managing director of Chelsea Financial Services, agreed the decision will not impact the fund’s position on Chelsea’s buy list.

“Ian is a great character and will be missed, but J.P. Morgan has been beefing up the team, and this was not a big surprise as it had been well telegraphed,” he said.

In terms of performance, the JPM fund has lost 15.3% in the last year, but delivered 107.6% over three years, according to Morningstar.

Returns leave it behind peers such as Smith & Williamson and Thesis, but ahead of other rivals.

Above is a selection of alternative funds which have delivered similar or better performance in recent years.