One of the many different heads of the Cabal. (DCFM)

(Reuters) - The JPMorgan Global Natural Resources Fund has lifted its exposure to precious metals since the end of April as risk aversion has increased, said JPMorgan Asset Management's head of natural resources.

"We have increased our gold exposure," Ian Henderson said at a precious metals conference led by ETF Securities on Thursday.

With risk aversion rising, gold stands out as an asset in which people are still prepared to invest, he said.

"Gold and precious metals exposure is currently around 39 percent, and we have commensurately reduced our base metals and diversified mining exposure."

Figures detailing the fund's holdings as of end-April show its allocation to gold and precious metals at 34.1 percent, while base metals and diversified mining was at 31.6 percent and energy at 26.5 percent.

Henderson also said the fund had reduced its exposure to Australian assets.

Australia's government this month announced a 40 percent tax levied on so-called super profits of miners from 2012 onwards.

"We have of course reacted to what has been happening in Australia by reducing our positions somewhat there," Henderson said.

He said he favoured gold mining equities with potential for future growth.

"The big mining companies have tended to lag the gold price movement, and in order to outperform, you have had to be involved in companies with growing resources, growing production, where it is possible to see future profits increasing faster than companies that are simply relying on gold price movement."

"I would say that the arguments for investing in the gold mining sector versus exchange-traded funds are pretty level," he said. "I don't believe there is a strong argument for the gold mining index itself to vastly outperform the gold price."

"That being said, I think there is a very good argument for investing in companies that have got growth and are developing new projects where you can actually see earnings growing going forward, or companies that are actually cutting their cost of production."

(Reporting by Jan Harvey; Editing by Jane Baird)

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