The bullish case for commodities is based on a  “super cycle”, with demand from emerging markets creating shortages and pushing prices up for decades to come.  On the other hand, after sharp rises in recent years, and taking account of global demand moderating in 2008, a key plank to your strategy in this area will be joining forces with a highly experienced manager. That is what you get with JPM Natural Resources fund, established in 1965 and with the same manager since 1992. The fund invests into companies engaged in the production and marketing of commodities, and tends to have 30% exposure to each of energy, gold and precious metals, and base metals.  

This is undoubtedly a higher risk fund.   For those comfortable with the high risk and volatility, this sector might represent up to 5% of a diversified portfolio. For those with a robust attitude to risk, this could be increased to nearer 10% on pronounced weakness.  It is at least twice as volatile as alternatives, such as M&G Global Basics, but the potential returns are probably also twice as great. 

To invest, primarily in the shares of, companies throughout the world engaged in the production and marketing of commodities. The Fund aims to provide capital growth over the long term.