The Baring Global Mining Fund is intended to launch in March, subject to regulatory approval and will have the mandate to invest in a wide range of companies across the world.
Burstow previously worked for Barings as an analyst between 2004 and 2007 before joining Alliance Bernstein. He then worked as vice president with responsibility for analysis and investment across the mining sector at BlackRock.
Barings said a distinguishing feature of Burstow’s new fund would be the flexibility to invest in companies across the full spectrum of market cap.
This will include companies engaged in exploration, development and production of non-ferrous metals through to those focused on precious metals and speciality commodities.
The firm expects most alpha-generating opportunities to be found at the small and mid-cap end of the mining sector since these are areas that analyst coverage is not always so comprehensive.
For that reason, within a portfolio of between 70 and 100 companies, Barings expects two-thirds to be small and mid-cap companies.
Burstow explained the rationale behind the new launch: "With stock valuations at compelling levels and the supply of resources constrained, we believe this is the time to invest in this multi-year investment opportunity.
"The case for global mining is exciting and continues to be driven by sustainable global demand on the one side and instability and inadequacy of supply on the other."
The fund’s benchmark index will be the HSBC Global Mining Index, for comparative purposes only, and the Ucits-compliant fund will be domiciled in Dublin.
