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JPMorgan Natural Resources -48% down but still hanging on

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  • puk999
    puk999 Posts: 552 Forumite
    Ninth Anniversary 500 Posts
    edited 23 July 2015 at 1:50PM
    This is why you should avoid funds and invest in a basket of stocks in a variety of sectors.

    Funds are a basket of stocks. Investing in individual stocks means transaction fees which in the main don't exist when purchasing funds. You can buy funds to cover a variety of sectors.
    The fund is a dog.

    Do you mean all funds or the JP Morgan Natural Resources Fund? Please explain.
  • HardCoreProgrammer
    HardCoreProgrammer Posts: 155 Forumite
    edited 25 July 2015 at 1:09PM
    masonic wrote: »
    So, let me get this right, you will only hold a fund if it hasn't underperformed its index over any 3 year period since inception?

    If there is no fund manager change, absolutely. (I did buy into Fidelity Global Special Situations after they sacked the previous fund manager.)
    Money does not come easy for me. Why should I give it (as management charge) to a fund manager who does worse than a tracker fund?

    If a fund manager consistently underpeforms the market, they need to start looking for another career, or their employer needs to gently nudge them in that direction. JP Morgan are you listening?
  • You only lose money when you sell.

    But if you do not sell, you could lose even more money when you have to sell.

    There are no concrete rules for investments I am afraid.
  • If there is no fund manager change, absolutely. (I did buy into Fidelity Global Special Situations after they sacked the previous fund manager.)
    Money does not come easy for me. Why should I give it (as management charge) to a fund manager who does worse than a tracker fund?
    I think the corollary of that is that is to go for a pure index tracking portfolio, because the proportion of managers who are able to outperform over all 3-year periods throughout their career is going to be very small indeed. It's hard enough to pick them when you take a 10 year view.
  • marathonic
    marathonic Posts: 1,786 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It's about time this fund had a good day. We'll need plenty more days like today before the fund will make up the loses of the last quarter - where it lost almost a third of its value.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    marathonic wrote: »
    It's about time this fund had a good day. We'll need plenty more days like today before the fund will make up the loses of the last quarter - where it lost almost a third of its value.

    What's required is an increased demand for iron ore ( for e.g.) to push commodity prices higher. Not simply for people to speculatively buy shares as they believe them to be bargains.
  • puk999
    puk999 Posts: 552 Forumite
    Ninth Anniversary 500 Posts
    marathonic wrote: »
    It's about time this fund had a good day. We'll need plenty more days like today before the fund will make up the loses of the last quarter - where it lost almost a third of its value.

    Did the fund go up? Where do you get your data as my quick searching shows no daily change but I suspect I'm looking at stale info.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    puk999 wrote: »
    marathonic wrote: »
    We'll need plenty more days like today before the fund will make up the loses of the last quarter
    Did the fund go up? Where do you get your data as my quick searching shows no daily change but I suspect I'm looking at stale info.
    The price change is only announced in arrears because they only cut the NAV once a day. But you don't need to get real time pricing to see that commodities and resources funds would have done well yesterday.

    market commentary picked at random:
    Uptick in mining, metals and oil and gas stocks pulled the London market higher on Thursday, as China’s stimulus and positive US data lifted sentiment.

    The FTSE 100 was up 3.56% or 212.83 points to 6,192.03, while the FTSE 250 was up 1.93% or 320.64 points at 16,921.95, as US GDP expanded by an annualised 3.7% in the three months to June, compared with an initial estimate of 2.3% and ahead of analysts’ expectations calling for a 3.2% increase.

    Meanwhile, US businesses increased investment at a 3.2% clip compared to an initial estimate of a 0.6% decline, as spending on structures such as office buildings was revised to show growth of 3.1% instead of a 1.6% drop.

    Both Brent and WTI responded in kind. By 1607 BST, the Brent front month futures contract had rallied 7.19% or $3.10 to $46.24 per barrel, while the WTI was up 7.07% or $2.73 to $41.33 per barrel.

    Base metals also bounced back in European trading despite fragile trading sentiment. Past the midway point of trading on the London Metal Exchange, three-month futures contracts of primary aluminium (up 0.7%), copper (up 1.4%), lead (up 0.7%), nickel (up 2.6%) and zinc (up 1.6%) were all trading higher.

    Invariably, miners and oil stocks led the gains. Anglo American led the blue chips closing 9.33% or 62p higher at 726.30p, with BHP Billiton (up 9.21%), Antofagasta(up 8.90%) and Rio Tinto (up 6.77%) in close attendance.
  • mvarrier
    mvarrier Posts: 104 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    There is a lot to learn about the science of investing but reading this thread from start to finish is an excellent introduction to the psychology of investing. Thanks everyone!
  • Hi folks,


    Currently picking funds for my Friends Life SIPP (my employer's provider of choice).


    I am 29, so willing to take a fair bit of risk early on. My pot is currently small.


    The JPM Natural Resources fund has performed dreadfully, but is surely ripe for putting some of my money into, as natural resources are bound to increase at some point during the next 35 years of my working life?


    My thoughts at the moment on fund selection are:


    JPM Natural Resources (10%)
    Blackrock emerging markets (25%)
    Blackrock pacific rim (10%)
    Property fund (25%) - not decided which one yet
    Blackrock consensus (15%)
    Blackrock over 15 year corporate bond index (Aq C)
    (15%)


    I have no investing experience, but have read a little.


    Any thoughts on the above strategy appreciated, as my choices are by no means set in stone. Note that I plan to move to less risky investments as time goes on.
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