The JPM Natural Resources and BlackRock Gold & General funds are often compared with each other, probably due to their previous popularity and track records.
The £1.1bn BlackRock Gold and General Fund, run by Evy Hambro since 2009, was launched in 1988.
The similar-sized JP Natural Resources Fund is run by Neil Gregson and team since 2012, having launched in 1965.
But there are some significant differences in how the funds are run as indicated by their respective fund names. As a result, the performance of the two funds can differ significantly.
“The BlackRock fund will always have a large weighting in gold shares, typically 70% or more of the fund, with precious metals making up most of the remainder. So the performance of these will have a huge impact on overall returns,” Patrick Connolly, certified financial planner at Chase de Vere, explains.
By comparison, the JPM fund is more diversified.
“It currently holds just 16% in gold and precious metal shares, with larger weightings in energy and base metals, so the performance of gold shares doesn’t necessarily have such an impact on overall returns,” Connolly says.
Find out more about how these two funds punch their weight in the global commodity arena, with insight from industry experts Patrick Connolly and Laith Khalaf.
