Gold funds soar in wake of Brexit

Data on funds classifed as investing in commodities by the UK Investment Association have seen their returns soar since voters in the UK decided to leave the EU – particulary those focused on gold.

Out of some 35 funds, just two have posted negative returns between 23-27 June on a sterling basis, data from FE suggest.

Others have made double-digit returns in a few days, as investors have shifted towards safe haven assets.

The top performer is the MFM Junior Gold fund, which has gained 12.83% over the period. It focuses on various aspects of gold, but predominantly companies involved in the identification and extraction of gold.

And it is not just smaller sized funds that have benefitted. The £1.1bn (€€1.32bn) BlackRock Gold & General fund has gained over 9%.

Fund Performance % 23-27/6/16 (£ return; source FE)
MFM Junior Gold P in GB 12.83
Investec Global Gold I Acc GBP in GB 11.26
BlackRock Gold & General D Acc in GB 9.06
BlackRock GF World Mining D2 USD in GB 8.51
Pimco GIS Commodity Real Return E Inc USD TR in GB 6.70
T. Rowe Price Global Natural Resources Equity Q EUR in GB 6.66
Marlborough ETF Commodity P Acc in GB 6.61
GS North American Energy & Energy Infrastructure Equity Portfolio R Acc in GB 6.47
WAY Charteris Gold & Precious Metals Elite E Acc in GB 6.44
Old Mutual Gold And Silver R GBP in GB 6.15
Smith & Williamson Global Gold & Resources B in GB 5.94
BlackRock GF World Energy D2 USD in GB 5.63
SF Peterhouse Smaller Companies Gold B in GB** 5.09
CF Eclectica Agriculture A Acc GBP in GB 5.01
Old Mutual Blackrock Gold & General U2 Acc in GB 4.96
Schroder ISF Global Energy Z Acc EUR in GB 4.94
BlackRock GF World Agriculture D2 USD in GB 4.91
First State Global Resources B GBP Acc in GB 4.83
Liontrust GF Global Water and Agriculture A4 Hedged Acc EUR in GB 4.67
Baring Global Agriculture I Acc GBP in GB 3.91
CF Canlife Global Resource C in GB 3.79
Artemis Global Energy I Acc in GB 3.68
Sarasin Food & Agriculture Opportunities P Acc in GB 3.51
BlackRock Natural Resources Growth & Income D Acc in GB 3.36
Baring Global Resources Fund I NAV GBP TR in GB 3.35
Investec Enhanced Natural Resources I Acc GBP in GB 3.00
BlackRock GF New Energy D2 USD in GB 2.67
Baring Global Mining A NAV GBP TR in GB 2.55
Allianz Global Agricultural Trends RT GBP TR in GB 2.04
Legg Mason Martin Currie Global Resources X GBP TR in GB 2.04
Investec Global Energy I Acc GBP in GB 1.91
Old Mutual JPM Natural Resources U2 Acc in GB 1.85
JPM Natural Resources C Acc in GB 1.73
Carmignac Portfolio Commodities F GBP Acc Hdg in GB** -0.45
MFM Junior Oils Trust P in GB -1.95

Commenting on the performance of gold, Carsten Menke, commodities research analyst at Julius Baer said that the price could rise to $1,400 per ounce in the near term.

However, he added: “Unless wider economic and financial market consequences materialise, eg renewed fears of a eurozone breakup, high prices are unlikely to last. History has shown that political events usually do not have a lasting impact on gold but cause short-term deviations from longer-term trends. That said, reflecting the prevailing uncertainties, we lift our gold price targets to $1,300 and $1,200 per ounce on a three and twelve-month horizon. Outside gold and beyond the impact of the stronger US dollar, we see no fundamental impact on commodity markets and leave our views unchanged.”





Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

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