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20 funds that suffered in the first half of 2012

Investment Week
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Investment Week

Resources funds are among the largest losers of the year so far as sharp falls in the price of oil and other commodities took their toll.

The price of a barrel of crude oil has crept up again since the start of July, but the impact of the second quarter sell-off is still being felt: a barrel of Brent crude current trades at $105, down from a 2012 peak of $125 a barrel in late March.

The fall in prices which saw Brent reach a 18-month low of $90.62 at the end of June also furthered the fall in other commodities, making for a miserable six months for a lot of resources funds.

With bullion selling off from a February high of $1,780 to trade at under $1,600 by the end of June, gold funds have also struggled this year.

As macro concerns continue to dominate, further monetary stimulus will likely help many lagging funds reverse their 2012 losses, though Federal Reserve chairman Ben

Bernanke seemingly reluctant to launch a fresh round of quantitative easing in an election year.

That leaves the question of whether gold can regain its safe haven status remaining finely balanced.

Investors in cyclicals, on the other hand, will be hoping for a dampening down of the eurozone crisis and more positive noises from China and the global economy.


Below are the 20 worst-performing funds of 2012 so far.

 Fund Name                                                 Return (%)                                              
 SF t1ps Smaller COmpanies Gold -33.55 
Junior Gold  -29.38 
SF t1ps Smaller Companies Growth  -29.06 
Schroder ISF Global Small Cap Energy  -20.18 
WAY Charteris Gold Portfolio  -19.81 
CF Riffer Baker Steel Gold  -18.74 
Smith and Williamson Global Gold & Resources  -18.06 
JPM Natural Resources  -16.22 
Guiness Alternative Energy  -15.67 
Thesis Australian Australian Natural Resources USD -15.62
Close Special Situations  -15.16 
Investec Global Gold  -14.88 
Thesis Australian Natural Res AUD  -14.80 
JPM Global Mining A Net Acc -14.44 
Schroder ISF Global Energy  -14.39
Blackrock Gold and General  -14.14 
First State Global Resources  -13.48 
SVM UK Absolute Alpha  -12.55 
BGF World Mining  -11.87
Baring Global Resources -11.64

Data to 30 June. Source: Morningstar