UK fund picks up stake in PNG listed company

2011-03-10T11:00:00Z

<p style="text-align: justify;">Papua New Guinea headquartered company New Britain Palm Oil, listed both on PNG's Port Moresby Stock Exchange and the London Stock Exchange, has caught the eye of Franklin UK Mid Cap fund.<!--more--></p>
<p style="text-align: justify;">Though the stock fell somewhat in recent months, overall it appreciated 135% in the past five years. “We bought it earlier this year and it is a particularly attractive business. Size-wise it is in the right space at a market cap of £1.3bn. There is nothing else in midcap that gives me exposure to growth in soft commodities in this way,” Fund Manager Paul Spencer told Investment Week magazine.</p>
<p style="text-align: justify;">The stock is one of just three the fund manager added to his portfolio in the past six months – which says a lot for the faith it puts on New Britain Palm Oil. The oil company is the world’s leading producer of sustainable palm oil certified in accordance with the Roundtable on Sustainable Palm Oil (RSPO) Principles &amp; Criteria.</p>
<p style="text-align: justify;">The World Economic Forum recently recognised the oil manufacturer as one of 16 among 1000 companies from the developing world that are best showing how to build profits while actively tackling environmental and social challenges.</p>
<p style="text-align: justify;">It has plants and processing facilities in both Papua New Guinea and the Solomon Islands.</p>
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