JPMorgan Natural Resources or First State Global Resources

mr_fishbulb

I currently get my natural resources hit by investing in the JM Finn Global Opportunities fund. I'm going to stop paying into here, but wanted a new fund to allow me to keep investing in natural resources.

I don't like the focus on Gold that the BlackRock fund gives, so I'm ruling that out (even though performance has been quite consistently good).

Not too keen on the Marlborough fund of commodity ETFs.

I'm down to the JP Morgan Natural Resources fund and First State Global Resources.

First State has a slightly lower TER cost.

Both are 4 stars on Morningstar. Citywire gives the First State fund a slightly higher score.

Past performance doesn't help - JPM wins over 10 years. Equal over 5 and FS is best over 3.

This fund picking lark is annoying - it starts of being easy to rule out funds, but gets a lot more difficult when you only have a few left! I'm also stuck with 2 technology funds.

Does anyone have anything I could read which could help me make my mind up? Many thanks.

wombat42_2

Year to date, the JPMNR fund is a slightly better performer than the First State fund. I was in Investec Enhanced Resources fund (like a less volatile version of JPMNR), but it hasnt performed well. Actually a lot of the smart money is on gold and gold shares. I have piled into Investec Global Gold fund rather than the Blackrock Gold and General fund, it has lower charges and may be better.

http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/investec-global-gold-accumulation

http://www.trustnet.com/Investments/Perf.aspx?univ=U&Pf_AssetClass=A:CMDY&Pf_sortedColumn=Performance[Cur].PYearToDate,NameFull&Pf_sortedDirection=DESC

mr_fishbulb

Cheers wombat (where have you been - not seen you on here for ages!).

I know that JPM Nat Res already has quite a bit of exposure to gold, but it is also free to move away if the manager decides gold isn't working out that way people thought. A fund which is more focused on gold specifically wouldn't be able to get out so easily.

wombat42_2

mr_fishbulb - yes i do remember conversing with you a year or so ago. I hadnt been on here for quite a while as i was keeping my portfolio static. You seem to have a downer on gold, but there is quite a lot of concern about base metals as things may be drying up in China, also oil prices are tanking at present. The JPMNR fund is never as flexible as to go 100% gold or oil or base metals.

mr_fishbulb

wombat42 wrote: »

The JPMNR fund is never as flexible as to go 100% gold or oil or base metals.

This could be a good thing for me though. My portfolio is so small (5 funds currently) that the ability of one fund to do that will have a big effect

wombat42_2

I was in agriculture funds but they have performed amazingly badly because of record harvests 3 years in a row, I am now 35% cash and 65% Investec Global Gold and nothing else

mr_fishbulb

Wow! I can actually see that working out well for you, but I wouldn't have the kahunas to be in that position.

Aegis

If you ultimately can't decide between two funds, is there anything stopping you from going into both?

StevieJ

I think the First State fund is more defensive in a high risk area.

MacsReturns

This fund picking lark is annoying - it starts of being easy to rule out funds, but gets a lot more difficult when you only have a few left! I'm also stuck with 2 technology funds.

What was it Sherlock Holmes said? "Once you've eliminated the impossible, whatever remains, however improbable, must be the truth?"

Seems like you've eliminated the impossible and are left facing the improbable

Kavor

About a month ago I found myself in exactly the same position as you. In the end, I couldn't decide between the two funds so ended up investing in both.