Glencore

EXTRACT FROM PORTFOLIO MANAGER COMMENTARIES – MARCH 2023

Despite meaningfully cutting exposure to diversified miners in 2022, we have retained our holdings  in Glencore and Anglo American. Both offer attractive free cash flow streams, even at more normal commodity prices. We expect energy markets to be tight over the medium term as demand remains robust during the transition to lower carbon energy sources and the lack of investment in new capacity over the last few years constrains supply. In our multi-asset funds, we have diversified our energy holdings across a basket of names to reduce company-specific risk. These funds’ resource holdings are the lowest in many years given our underweight positions in both PGMs and gold.