The Papua New Guinea stock catching UK star Spencer's eye

Paul Spencer, manager of the Franklin UK Mid Cap fund, has initiated a holding in New Britain Palm Oil - the fund's first ever investment outside the FTSE 250.

Papua New Guinea-based New Britain Palm Oil, dual-listed on the London Stock Exchange and PNG's Port Moresby Stock Exchange, is excluded from the FTSE indices due to its overseas base and the fact one shareholder, Malaysian peer Kulim, owns a 51% stake. "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," Spencer said. "There is nothing else in midcap that gives me exposure to growth in soft commodities in this way." The stock has fallen during the sell-off, in line with most equities, and is cu...