Demand overwhelms supply on commodities

Ian Henderson, manager of the JPM Natural Resources fund, says the sector was slightly affected by the market sell-off at the end of February but has “bounced back” to end the quarter on a positive note. In sterling terms, the MSCI World Metals & Mining returned 10.7%, the MSCI World Energy rose 0.4%, while Dow Jones Gold Mining fell 8.2%. Henderson says he is confident the sector will offer significant returns in the long term. “Our outlook for the natural resources sector remains positive as we expect that rising commodity demand will continue to outstrip supply in the long-term,” he s...