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The ten worst performing funds of the year so far…

Kyle Caldwell
Written By:
Kyle Caldwell

Gold and resources funds continued to struggle in the first quarter of 2013, as investors chose equities over more traditional safe haven assets.

Gold has been one of the worst performing metals so far this year, declining 5.74% to $1,580 in the three months to the end of March, well below its all-time high above $1,900 seen in September 2011.

General mining equities have also had a moderate start to the year, unable to keep up pace with global equity markets as slowing demand in China impacted the outlook for the sector.

The FTSE All-Share rose 8.24% in Q1 but miners were one of the worst performing sectors, with the FTSE 350 Mining index returning a paltry 0.28%.

However, it is gold mining companies which have fared the worst, with the beaten-up sector declining further in Q1. As a result, eight of the worst ten performing funds in the IMA universe invest predominantly in gold equities.

Peter Webb’s SF t1ps Smaller Companies Gold fund, the worst performing fund in 2012, remained rooted to the bottom of the IMA fund league tables in the first quarter, posting a 17.74% loss.

Closely behind Webb is Angelos Damaskos’ Junior Gold trust, recording a 17.63% loss so far this year.

Other resources funds in the top ten include Evy Hambro’s BlackRock Gold and General fund and Neil Gregson’s JPM Global Mining fund, which have lost 10.14% and 7.01% respectively.

Below is the full list of the worst ten performing funds in Q1.

Fund Return over Q1 2013 
 SF t1ps Smaller Companies Gold  -17.74%
 Junior Gold  -17.63%
 S&W ILEX Trust  -17.28%
 CF Ruffer Baker Steel Gold  -13.21%
 WAY Charteris Gold Portfolio  -12.49%
 BlackRock Gold and General  -10.14%
 BGF World Mining  -9.15%
 Smith & Williamson Global Gold & Resources  -8.72%
 SF t1ps Smaller Companies Growth  -7.76%
 JPM Global Mining  -7.01%

Source: Morningstar

Data from 1/1/2013 to 31/03/2013