JPMorgan Natural Resources -48% down but still hanging on

jabbahut40 · 21 December 2013 at 9:34AM

Hi,

I bought into JPMorgan Natural Resources in my SIPP at its peak and now currently seeing the value of my investment -48% down. I still believe that commodities will rise in 2014 as China etc continue to pick up pace and to be honest cannot face realising such a big loss. Is anyone else still invested is this fund and if so what are your reasons for staying invested.

Thanks,

Jabba

pip895 · 21 December 2013 at 10:15AM

My biggest loss too - Its a dilemma - keep thinking its got to turn round sometime. Think it could take a while though possibly more than a couple of years. My solution has been to reduce exposure a bit but leave most of it alone and hope.

JohnRo · 21 December 2013 at 11:43AM

Wouldn't the pragmatic solution be to drive down your average unit cost, if the option is available and you genuinely think it's going to recover?

planteria · 21 December 2013 at 11:46AM

i am in the S&W Gold fund, in a similar position, along with holdings in Anglo American and Glencore Xstrata.
i added to my S&W fund, to average down.
i think resources are going to do well, long-term.

dunstonh · 21 December 2013 at 12:05PM

My biggest loss too - Its a dilemma - keep thinking its got to turn round sometime.

It isnt a dilemma really. This is a fund that can double in 12 months or half in 12 months. It is a specialist fund designed for a small amount of your money. It is doing exactly what is expected of it.

My solution has been to reduce exposure a bit but leave most of it alone and hope.

Or add to it as part of your rebalancing so when it does go back up, you would have some purchased at a lower price. It really depends on how much you hold as part of your wider portfolio.

tejero23f · 21 December 2013 at 2:14PM

I have been watching JPM natural resources chart go south for the last 3 years, it can be only a matter of time before the compass turns-keep an eye on it for a sharp rise and catch the wind.

gozomark · 21 December 2013 at 2:25PM

If you didn't already own it, would you buy it now ? If not, then you should sell what you have.

sabretoothtigger · 21 December 2013 at 2:35PM

Commodities do this. Just think of a failed harvest or a bumper one, its always been the way that it is uneven.

This is large part of why markets were setup to actually aid in providing long term price coverage and 'insurance' (options)

Selling now would be ignorance of the basic market dynamics. I'd do some hard reading before deciding basic materials will continue to be in excess

Relative to sterling, of course we import mostly so the added confusion is theres a personal perspective as well as considering China etc.
If you think petrol prices are going to keep going down I'd doubt your optimism is well founded

Im down -35% on a gold fund but I think thats normal and it can go up 100% quite easily. The main thing is companies able to avoid fire sales & bankruptcy

musehead · 21 December 2013 at 3:21PM

It's a small part of my portfolio, when I first bought it was my best performing fund (in around 2009) and almost doubled in value. It's currently my worst performing fund along with a gold mining one, I put more money into both of them when I last rebalanced. It's very likely to go up again at some point, it's just very volatile.

Doshwaster · 21 December 2013 at 3:28PM

I'm in a similar position with Blackrock Gold & General where I am down 54%. There's not much point in selling so I'm hoping that it will be a long term winner. It is tempting to add to my holding why the prices are so "cheap" even though human instinct is to buy into hot funds which are currently rising sharply.

Savings_Dave · 21 December 2013 at 5:00PM

I think those looking at the current large losses maybe investing in it for the wrong reasons - its a long term fund and does have high volatitlity. The continuing fall of commodity prices hasn't helped and it could be a while until this specialist fund recovers. Three years really isn't enough time to be holidng this fund - consider more like 10 years +

Have held for over 2 years and I'm at a 29% loss but it only accounts for about 1.6% of my portfolio. I still continue to contribute to it and understand that it is a high risk, volatile fund which is why I do not worry about it. Out of the twenty two funds I currently have this is the biggest loser - six others register a small single figure loss.

JPMorgan Natural Resources -48% down but still hanging on

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