The soaring price of gold, reaching new heights at $2,440 per ounce, has propelled gold-focused mutual funds ahead of global equity market indices.
Driven by escalating geopolitical tensions in the Middle East and mounting expectations for forthcoming monetary policy easing from the US Federal Reserve, gold prices have surged approximately 20% in the past month.
This surge has enabled gold-focused funds to nearly double the gains of broader equity indices year-to-date. For comparison, the MSCI World index has delivered a return of 10.5% thus far in 2024.
In light of these developments, Financial Services Agency (FSA) sheds light on five top-performing gold strategies available for distribution in Hong Kong and Singapore, based on data from FE fundinfo.
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1. Franklin Gold and Precious Metals Fund
This fund has delivered a year-to-date return of 19.9%. Managed by Steve Land and Fred Fromm, the $447 million fund is benchmarked against the FTSE Gold Mines Index. Its portfolio primarily consists of investments in gold mining equities, with top positions held by Newmont Corp, Agnico Eagle Mines, and Alamos Gold.
2. Jupiter Gold and Silver Fund
With a year-to-date return of 16.8%, this $812 million fund is managed by Ned Naylor-Leyland, Joe Lunn, and Chris Mahoney. It invests in both gold and silver mining equities, as well as gold and silver bullion. Silver, besides being a monetary store, serves as an industrial component for solar panels and electronics.
3. Schroder ISF Global Gold Fund
Managed by James Luke, this $540 million fund has delivered a year-to-date return of 15%. While primarily focusing on gold mining equities, it also includes investments in certain silver miners like Hochschild Mining.
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4. BlackRock GF World Gold Fund
With a year-to-date return of 14.9%, this flagship $4 billion fund is managed by Evy Hambro and Tom Holl. Like the Schroder fund, it primarily focuses on gold miners but also invests in silver miners such as Pan American Silver Corp.
5. Ninety One Global Gold Fund
Managed by George Cheveley, this $468 million fund has delivered a year-to-date return of 12.1%. Similar to the aforementioned funds, it predominantly invests in gold miners, often with exposure to copper due to the nature of the deposits.
