Hidden gems among Europe’s commodities experts

A £61m Guernsey-based closed ended fund returned close to 400% over three years, to lead a list of top performing commodity funds domiciled in Europe.

New City Investment Managers took over the investment management function of the Golden Prospect Precious Metals fund in the third quarter of 2008.

Data from FE suggests it has returned over 392% in gross euro terms in the three years to 21 December 2011. Top holdings as of November 30 included Silver Wheaton, Ausgold, Yamana, SPDR Gold Trust and Iamgold.

Another of the manager’s funds also scored highly. According to the data its City Natural Resources High Yield fund returned about 277% over the period.

The Liechtenstein-based Oak Tree Junior Mining & Exploration Fund reported a NAV of CAD167m at the end of November. The manager is Ahead International Portfolio, and the fund has returned 267% over the period.

Luxembourg-based IP Concept Stabilitas Pacific Gold Metals has returned 250% over the period. Gold makes up 86% of the portfolio, silver 4%, and base metals 10%. Australia and Canada dominate its geographic exposure, accounting for 96% of the portfolio.

Malta-based Valletta Timeless Precious Metal, which is focused on equities of small to medium sized mining companies, is up 256% over the period.

What also stands out in the data is that smaller funds have performed better generally speaking than the biggest funds.

the data shows that there is only one fund – BlackRock World Mining Investment Trust – with a return of more than 200% over the period and AUM greater than €1bn.

The €1.9bn ZKB Silver ETF returned about 181%. The €2.4bn JPM Natural Resources fund returned about 147%.

The €6.6bn Pioneer Funds Austria Gold Stock fund returned about 101%.


Another trend in the data is the strong performance of leveraged exchange traded funds.

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