Funds

[DimPrawn]

Here's something to think about when investing your money.

Managed funds.

Here's the performance of managed funds (you know, some fat bwanker manages them for you for a cut of the money) focussed on gold:



UK Registered Investment Funds


31/12/2010 to 05/08/2011

% Chg

Domicile



BlackRock Gold and General A Inc

-11.58

United Kingdom



CF Ruffer Baker Steel Gold O

-17.12

United Kingdom



ETFS Gold ETC

10.42

Jersey



ETFS Leveraged Gold ETC

25.93

Jersey



Investec Global Gold A Acc Net GBP

-15.59

United Kingdom



Smith & Williamson Glbl Gold & Resources

-13.91

United Kingdom


Now go and compare that with the change in the price of gold over the last 12 months.

s

Thankfully, I've never paid anyone to invest my money on my behalf when I see figures like this.

[DaveB]

Here's something to think about when investing your money.

Managed funds.

Here's the performance of managed funds (you know, some fat bwanker manages them for you for a cut of the money) focussed on gold:

Now go and compare that with the change in the price of gold over the last 12 months.

s

Thankfully, I've never paid anyone to invest my money on my behalf when I see figures like this.

I forget where but I remember seeing a report a little while back comparing a range of managed funds to a simple FTSE tracker fund. The tracker outperformed all of the managed funds by a comfortable margin.

[ASB]

Now go and compare that with the change in the price of gold over the last 12 months.

s

Thankfully, I've never paid anyone to invest my money on my behalf when I see figures like this.

Entirely invalid comparison. Those funds are not focussed on gold. They are focussed on resource stocks which are focussed generally in the mining sector. Totally different. The closest you get a valid comparison in that is to the ETFs. Of more relevance might be how those funds had compared to a relevant index and to their peers.

Though I do agree with the general point than most managed funds will tend to underperform.

[DimPrawn]

Investec Global Gold Fund

To achieve long term capital growth primarily through investment in equities issued by companies around the globe involved in gold mining and in derivatives, the underlying assets of which are equities issued by companies around the globe involved in gold mining. The Fund may also invest, in particular, in companies around the globe that are involved in mining for other precious metals and other minerals and metals.

[AtW]

To achieve long term capital growth primarily through investment in equities issued by companies around the globe involved in gold mining and in derivatives, the underlying assets of which are equities issued by companies around the globe involved in gold mining. The Fund may also invest, in particular, in companies around the globe that are involved in mining for other precious metals and other minerals and metals.

Probably lost money when shorting the very same gold trying to make money both on ups and downs?

That's the problem with stock "market" - or more like stock casino: way too many people playing it and it turned from fund raising and fair value estimation to "free for all gamble", about time massive taxes are used on short term investments and complete ban on shorting.

[lukemg]

Brilliant, pick out a couple of examples from thousands to try to prove a point. Turns out you are partially correct.
- Impact of higher charges and inability of almost anyone to consistently predict markets does tend to favour trackers over active managers in mature markets.
- BUT, for exposure to more exotic locations I do favour the best managed funds to provide diversity and local knowledge.
- Consider Investment Trusts as an alternative, they are low-cost, been around for many years, give an element of diversity and management and can provide a regular dividend.
- For UK market, consider mopping up dividend paying behemoths from a range of industry sectors which are currently cheap as chips.
HOLD YOUR NERVE, if you can't, stay out of the market.

[DimPrawn]

Probably lost money when shorting the very same gold trying to make money both on ups and downs?

That's the problem with stock "market" - or more like stock casino: way too many people playing it and it turned from fund raising and fair value estimation to "free for all gamble", about time massive taxes are used on short term investments and complete ban on shorting.

What's wrong with shorting?

You borrow your mates new Porsche (he paid £100K for it). You sell it for £95K and then buy an identical looking one a month later for £90K and give it back to him.

He's got an identical car and you've got £5K in your pocket. Luverly Jubbly!

[ASB]

To achieve long term capital growth primarily through investment in equities issued by companies around the globe involved in gold mining and in derivatives, the underlying assets of which are equities issued by companies around the globe involved in gold mining. The Fund may also invest, in particular, in companies around the globe that are involved in mining for other precious metals and other minerals and metals.

Exactly, nothing (directly) to do with physical gold. Everything to do with production prospects

If you expect producers, miners, explorers to mirror POG then you are wrong for a whole number of reasons. POG is a factor however in the likely profitability of resource companies.

[AtW]

- For UK market, consider mopping up dividend paying behemoths from a range of industry sectors which are currently cheap as chips.

[lukemg]

Stick to threads you have some chance of understanding atw, been playing this game for 16 years and my average annual return is >9% across the lot and I've seen plenty of booms and busts during that time.
Thing is, when you have a fund that's gone up 300%, a short-term 10% drop doesn't have much impact.
There's blood on the streets (literally) - I am buying as heavily as I can ! Will let you know in 10 years (not 10 days)if it was the right choice...