JPMorgan Natural Resources -48% down but still hanging on

jabbahut40

Hi,


Just logged onto HL to check my SIPP portfolio which includes JPM Natural Resources. This fund is now down a staggering -57%.


Appreciate this this fund is high risk and whilst this fund is only 7% of my overall portfolio its been a poor performer for a number of years.


Should I switch fund to a different sector to regain some growth (and effectively accept a huge loss) or keep hanging on? If nothing else its been a lesson learned.


Thoughts welcome.


Jabba

Chickereeeee

Nobody knows. But consider:

1) Is the fund a good performer against its sector benchmark?

2) As the fund (and the sector) is at a low, if you did not hold it, would you now be considering buying it? (Buy low/sell high)

Point 2 often stops me from doing anything rash....

Personally, I think it WILL recover, hugely. The question is, of course when? And what are your timescales?

C

jabbahut40

Chickereeeee wrote: »

Nobody knows. But consider:
1) Is the fund a good performer against its sector benchmark?

No. Looks pretty poor against the specialist sector benchmark.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=SPCOM&univ=O&pagetype=overview

Chickereeeee wrote: »

2) As the fund (and the sector) is at a low, if you did not hold it, would you now be considering buying it? (Buy low/sell high)

I would consider investing in the sector but not sure I would choose commodities again. Very high risk and -50% drop over 3 years against gains elsewhere.

Chickereeeee wrote: »

Personally, I think it WILL recover, hugely. The question is, of course when? And what are your timescales?

That's the $64,000 question. My timescales are to invest for growth for another 10 years. In hindsight I think I should have switched earlier (after a 20% drop, which I did in my S&S ISA when I held the same fund) however am struggling to switch now in my SIPP as this would realise my losses.


Technically I don't realise any loses until I cash in which is making me keep this in the hope that the commodity cycle kick starts again this year. I've seen this fund move +10% in a month before so fingers (and toes) crossed.


Jabba

JohnRo

allocation, rebalance, sorted.

Chickereeeee

JohnRo wrote: »

allocation, rebalance, sorted.

Which, of course, if allocation was correct before, means buying MORE of the fund..

C

Chickereeeee

jabbahut40 wrote: »

No. Looks pretty poor against the specialist sector benchmark.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=SPCOM&univ=O&pagetype=overview

Wrong bechmark. That is just the 'Specialist' one, which can include Biotech etc. If you want Resources, find a resources benchmark (or compare with other funds). If you dont want resources, sell

C

jabbahut40

Chickereeeee wrote: »

Wrong bechmark. That is just the 'Specialist' one, which can include Biotech etc. If you want Resources, find a resources benchmark (or compare with other funds). If you dont want resources, sell

C

Ahh....Thanks Chickereeeee

sabretoothtigger

Doshwaster wrote: »

I'm 45% down overall with Blackrock Gold & General but I'm hanging in there and have no interest in selling. The fund is up 20% in the last 3 months so maybe the good times are just around the corner.

Gold should gain from lower oil as almost all gold requires alot of energy to extract and refine.

The dollar is stronger then its been for a long time but the reasons for this are not solid but speculative reflecting expected rate rises. The fundamentals dont allow USA debt to be paid off at higher rates and GDP is not good

zolablue25

Stuck £500 in this fund this morning. I figure people still need "stuff" and this "stuff" that people need has to be made from something.

marathonic

UK Smaller Companies 10.78% 10.00%
SE BAQ UK Equity 14.98% 15.00%
SE JPM Natural Res 8.30% 10.00%
SE BAQ European 20.85% 20.00%
SE BAQ US 15.08% 15.00%
SE BAQ Pacific Rim 15.03% 15.00%
SE JPM EMERGING MKTS 14.98% 15.00%


I done my annual rebalance of my pension fund today - the original and current allocations can be seen above.

As can be seen, JPM Natural Resources is the only one that really went significantly out of balance - although, at the opposite end of the scale, Europe and UK Smaller Companies did perform well.

I should be back to my original allocation, also shown above, by the start of next week. This will reallocate some of my best performing holdings to JPM Natural Resources at current prices - which, although low, have proven time and time again to be nowhere near a bottom :eek: