ASSET MANAGER
BlackRock gold fund feels pain of miners
New York — This year has not been kind to precious-metal stock pickers at the world’s biggest asset manager, but their luck may be about to turn. The $1.3bn BlackRock gold and general fund lost 15% in the last quarter, its worst performance since the third quarter of 2015. Among large materials-focused equity funds, it was the second-worst performer after another BlackRock gold fund domiciled in Japan. BlackRock was not alone in suffering losses on its gold investments in the first quarter, with AMG and Franklin funds both losing more than 9%. While the price of gold has edged higher in 2018 and producer earnings are improving, investors are seeking higher returns in flashier industries such as electric-vehicle commodities and cryptocurrencies at a time of rising interest rates and accelerating global growth. "Recent relative performance of the fund has been disappointing," Tom Holl, a money manager at BlackRock, said. "A contributor to this performance in 2018 has been the underper...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.