Rated Funds 2014: Four commodities funds

However, we feel that in current circumstances, mainstream equities will be able to serve this function - and provide an income. But for investors who do feel the need to keep a toe in the water, it is worth noting that both the First State and BlackRock funds do include gold investments in their portfolios.

To see the full list of Money Observer Rated Funds, click here.

Baring Global Agriculture

The Baring Global Agriculture fund is an Editor's Selection. Although its absolute performance has not been great, it is one of the few funds that offer investors access to this asset class. The fund is now managed solely by James Goven, co-manager for the past four years. It invests in any company where the majority of earnings are derived from activities related to agriculture and soft commodities.This ranges from companies specialising in fertilisers and machinery and firms involved in grain handling and logistics, to food manufacturers and retailers. Although there have been headwinds in the sector, Goven believes there is still a good investment case. The fund tends to be North America-centric due to the large agricultural companies listed there.

First State Global Resources

First State Global Resources is an Editor's Selection. First State has an impressive global resources team that has been established for over 15 years. Key members of the team are based in Australia, including the head of global resources, Joanne Warner. It includes experts in the fields of physics, metallurgy, chemistry and agriculture, so there is a fundamental understanding of the risks and opportunities associated with resource projects.Mine and site visits are a key part of the investment process. However, they also look carefully for companies that meet their financial criteria, which include strong balance sheets, organic earnings per share growth and experienced management. The portfolio is diversified across a range of commodities.

Investec Global Energy

The Investec Global Energy fund is another Editor's Selection. It has been managed by Tom Nelson and Charles Whall for just over a year. However, both managers are highly experienced, and Nelson was previously involved in running the fund when it was outsourced to Guinness Asset Management. Since they took over, its performance has been strong.It invests in companies involved in the exploration, production and distribution of oil, gas and other forms of energy, as well as companies providing services to the energy industry. The managers strongly disagree with the consensus view that oil prices are moving down as a result of surplus supply. They expect oil prices to be driven higher by increasing demand and lack of supply, and that company profits will increase as a result.

BlackRock World Mining IT

The BlackRock World Mining Investment Trust is an Editor's Selection. It invests mainly in the shares of larger mining and metal companies, though it can hold up to 10% in physical metals and 20% in unquoted investments. Its highly experienced investment team, Evy Hambro and Catherine Raw, have a strong track record.The trust's portfolio is well diversified both geographically and in terms of the types of commodities to which it is exposed. The managers focus on companies with strong balance sheets and high asset quality. They have also started placing a greater emphasis on income. That has been achieved by invested in the fixed income securities of mid-cap mining companies and more recently by buying royalties, which involves financing a proportion of a mining project in exchange for a percentage of that project's revenue.

To find out the methodology behind Money Observer's Rated Funds, read: How 2014's Rated Funds were chosen.