JPMorgan Natural Resources -48% down but still hanging on

marathonic

I've just doubled my JPM Natural Resources allocation in my pension fund - diverting 5% of the total fund value away from the US and towards this.

It's a high risk portfolio but with over 30 years to run. I wouldn't go beyond 10% in this particular fund though - even in a portfolio created with high-risk, high-return in mind.

Old_Slaphead

Certainly not an overvalued sector and, being a bit of a contrarian, I've been dripfeeding some funds into FS Glob Resources. Doesn't seem to have fared as badly as JPM NR.
I don't expect a big turnaround in the miners but there seems to be scope for cost cutting, buybacks and/or improved dividends if they've managed to rid themselves of their 'world domination' complex and are looking at focusing on shareholder returns.

Ryan_Futuristics

I'm not sure they're looking great value - I sold my mining stocks when they were looking cheap, but they've kept falling

With FS Global Resources, I'd really like to see a P/E ratio lower than Projected Growth (or at least lower than Projected Growth + Dividend ... This is a crude method I'm using at the moment to get some idea of a fund's value)
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000000ESO&tab=3

JPMorgan looks like it might be better value to me (although First State's track record and management style is almost enough to sway me away from just looking at valuation)

Kendall80

Old_Slaphead wrote: »

Certainly not an overvalued sector and, being a bit of a contrarian, I've been dripfeeding some funds into FS Glob Resources. Doesn't seem to have fared as badly as JPM NR.
I don't expect a big turnaround in the miners but there seems to be scope for cost cutting, buybacks and/or improved dividends if they've managed to rid themselves of their 'world domination' complex and are looking at focusing on shareholder returns.

I opted for global resources too. I was looking for some contrarian diversification and it was that or the investec gold fund (which has dropped 'a lot'). I didn't want to diversify by being too specific so opted for FS GR - which has a small but significant exposure to gold along with the core energy and industrials components.

jabbahut40

Still down -50% overall but the fund has risen 7% in November. Fingers crossed :-)

Kendall80

jabbahut40 wrote: »

Still down -50% overall but the fund has risen 7% in November. Fingers crossed :-)

Thats mostly gold-related probably. Investec global gold is up 15% on the month.

However, mining shares did rise on friday after the chinese rate move.

I've only a 5% allocation but I might part with a little of the xmas bonus next month

jabbahut40

Just checked my portfolio. JMP Natural Resources is now down -58% from the when I bought it a few years ago. Scared to look again!!!

Kendall80

jabbahut40 wrote: »

Just checked my portfolio. JMP Natural Resources is now down -58% from the when I bought it a few years ago. Scared to look again!!!

A good time to buy some more and average down then

racing_blue

I have just compared performance of JPM Natural resources class C accumulation fund to the FTSE 350 Mining index using HL's website. Timeframe October 2012 to present.

The JPM fund appears to have gradually and consistently lost ground. So where as the FTSE 350 mining index is now 20% lower than in October 2012, the JPM fund is now about 40% lower.

Can anyone explain why this is? Am I missing something obvious?

Apart from this, the correlation seems very close.

bowlhead99

It will be correlated with (i.e. move in same or similar direction as) the FTSE 350 mining index, because it holds mining stocks.

You wouldn't expect it to have the same performance as the FTSE 350 mining index because it does not intend to hold the same shares in the same proportions.

Surely if you wanted a fund that delivered the same as an index you would just invest in the index. So the fund only exists because people do not want to invest in an index. Actively managed funds may outperform in some markets and underperform in others over various timescales.

If you wanted to evaluate a fund you would consider it over multiple economic cycles, 10 years plus. It doesn't seem sensible to evaluate it over a 30 month period. The stated intention of the fund is not "to preserve capital and lose less than some UK mining index loses in a 3 year bear market"