JPM Natural resources & Merriyll Lynch Gold & General

hyposmurf

Im considering buying some units in commodities.Two that I have come across are JP Morgan Natural resources & Meriyll Lynch Gold & General.Both of these funds appear to be be quite large and are doing well recently so I'm wondering whether they are worth my while.Wondering whether I'd be jumping on the bandwagon too late.Would I be better off looking at a smaller commodities fund or waiting for the two above funds to dip and then buy.What other general comodity funds are there?
What are your general feelings on the commodity funds market at the moment?I've been reading a number of articles that indicate that their performance will increase due to the mass urbanisation of China and also that while interest rates are low commodity funds usually prosper.

Both fund managers Ian Henderson and Graham Birch appear to have vast experience and their performance looks good.Does anyone have any other views on their performance/stance?

On a side note I have seen that many funds daily unit price is said to change at 12pm each day,but if I view websites like Trustnet and H&L the price isnt updated until later in the afternoon/evening.Late updates or time difference?How can I make sure I purchase a fund for the units I see,rather than there being a delay and having the units being put through on another day at different unit cost?

cheerfulcat

I have held the ML Gold & General fund for some years now. I would still buy now, if I weren't already as fully invested in commodities as I feel comfortable with. Graham Birch also manages the Merrill Lynch World Mining investment trust.

How can I make sure I purchase a fund for the units I see,rather than there being a delay and having the units being put through on another day at different unit cost?

You can't, with unit trusts. Investment trusts are infinitely superior in this and IMO many other respects.

hyposmurf

I was just hoping to take advantage of a dip in the rate.I bought my units for my BRIC fund on one day and they werent put through until the next,so that I bought them at the higher cost the next day.Quite annoying but not alot I can do.If say the units cost 500 each on thursday you saw this unit cost on thrusday night and purchased them on thursday night surely that has been logged as the funds being bought before 12pm the next day?

wombat42_2

AN IMPORTANT POINT IS THAT THOSE TWO FUNDS INVEST IN MINING COMPANIES NOT THE COMMODITIES DIRECT.

Many think there is a commodity supercycle over the nexy 10 years mainly because of Chinas growth. However it does not necessarly translate into big profits for the mining companies as there may be higher overheads for example. It would be great if there was an actively managed unit trust that invested directly in commodities but there isnt one.

cheerfulcat

hyposmurf wrote: »

If say the units cost 500 each on thursday you saw this unit cost on thrusday night and purchased them on thursday night surely that has been logged as the funds being bought before 12pm the next day?

They are still bought at the next day's price, though, as most unit trusts are forward-priced.

Investment trusts have the advantage of being priced in real time but there is no equivalent to the ML Gold and General in IT form, AFAIK.

ramborai1987

doesnt merril lynch gold & general look extremely overvalued at the moment to you?

you may have just missed the boom and may be buying when there could be a slight fall. you wouldnt want to get caught in that

gotta admit that fund has done extremely well over the last few years though

egamar

ramborai1987 wrote: »

doesnt merril lynch gold & general look extremely overvalued at the moment to you?

Yes. It's a 'safe haven' in times of turmoil.

The liquidity crisis and downturn in property funds will have sent money that way, as well as into China and India. That's why I'm looking at some stonking gains since May in those areas and have no idea where to put them!

It's not a time I'd be buying any of these funds (gold, natural resources, commodity, mining based) although they have been spectacular performers for me over the last 4/5 years.

BY the way, also have a look at M&G Global Basics.

[Deleted User]

Hi,

I used these two funds for my ISA this year, and so far, since April, JPM is up 26.53% and ML is up 31.57%, so quite happy with that. (You can change time periods of chart.)

It's only since mid August that ML has taken off.

Think if I was investing now might think I had missed the boat, looks as though market is in for a bit of turmoil this morning, so might be a good thing, if you are brave enough. :rotfl:

wombat42_2

egamar wrote: »

Yes. It's a 'safe haven' in times of turmoil.

The liquidity crisis and downturn in property funds will have sent money that way, as well as into China and India. That's why I'm looking at some stonking gains since May in those areas and have no idea where to put them!

It's not a time I'd be buying any of these funds (gold, natural resources, commodity, mining based) although they have been spectacular performers for me over the last 4/5 years.

BY the way, also have a look at M&G Global Basics.

Yes i think Global funds are an excellent idea - potentially saves a lot of chopping and changing - let the fund manager do the allocation switching for you. I have gone for Artemis Global Growth and Neptune Global Equities.

hyposmurf

The two above funds I mentioned seemed to have risen quite some,shame I didnt get in earlier,however how long that will last I dont know.The M&G global basics seems to be performing less well.Will have to decide whether to buyn funds in M&G while they are in a lul.

wombat42_2

hyposmurf wrote: »

The two above funds I mentioned seemed to have risen quite some,shame I didnt get in earlier,however how long that will last I dont know.The M&G global basics seems to be performing less well.Will have to decide whether to buyn funds in M&G while they are in a lul.

It is very difficult to time the market on a short term basis. A top performer one year could well be bottom performer next year. I think Global funds are great with a long term view of over 5 years - the return should still be respectable (at least 20% plus per year) and less volatile than specialst funds.

Artemis Global Growth and Neptune Global Equities.are top performing Global funds better than M&G Global basics.