STANLIB Resources Gaining in a strong market

RESOURCES are rewarding their supporters with continued gains, judging by the success achieved by the STANLIB Resources Fund, one of the specialist equity unit trusts offered by STANLIB, the country's largest unit trust company.

The fund heads its unit trust peers for the three months to the end of March with growth of 23.19% and also leads over six months, notching up a 35.25% return. Over the year to March 30, it has recorded gains of 56.22%.

Warren Buhai, resource analyst and portfolio manager responsible for the fund, commented: "We're extremely heartened by the gains achieved by our investors. The profit represents a significant reward for those with continuing belief in the underlying strength of the commodity market.

"For some time, commentators have been predicting that new production will soon bring supply and demand into closer alignment. In fact, new projects have been subject to delay while demand has remained very robust. This has supported commodity prices and led to strong earnings growth in the sector.

"Eventually, these higher prices will induce sufficient new supplies that will bring markets more in balance thereby negatively impacting commodity prices, but for the present and potentially until early next year we believe the fundamentals remain broadly positive."