Worst performing funds of Q1
By Sonia Rach, 4 Apr 18
Markets stumbled in 1Q18 after a positive run in 2017. While economic data was largely positive, Italy delivered an inconclusive election result, a new US Fed chair was appointed, and Donald Trump took the first steps towards a trade war.
In fifth place is one of three gold and precious metals funds.
The Charteris Gold & Precious Metals produced returns of -12.4%, compared to -4.1% for IA Specialist benchmark.
Co-managed by Ian Williams, Mark Williams and Nick Taylor, the fund launched in 2010 and now has £10.2m ($14.3m, €11.7m) under management.
The fund has a split of gold (37%), silver (62%) and palladium (1%).
Ben Yearsley, director at Shore Financial said the clear theme for underperformance over the quarter is gold equities.
He said: “The strange thing about this is that the gold price hasn’t done a great deal in the first quarter, the price is broadly where it was at the turn of the year.
“There is a view among investors that despite gold staying firm, much higher prices are needed to fund dividend payouts and that at the level gold is today, investors won’t be getting much of a return for their investment in good mining companies.
“Other broader commodities companies have rebounded strongly over recent years and shareholders have benefitted both from share prices and dividend pay-outs. Gold has lagged.”
Tags: Blackrock | Investment Strategy | Jupiter | Smith & Williamson
