The P&C Global Gold and Natural Resources Fund's gross
NAV rose by
26%
in August. Seed investors of 6 months ago have made over
48%. The FTSE Gold Mines Index (USD) was +13% in August
and the Merrill Lynch International Gold and General Fund
(USD) +14%. We are ahead of this leading fund and the
FTSE Gold index by about 30% since inception, though our
benchmark is USD cash, not an index. In July, Gold rose
6% and Silver was flat.
As
at 31/8/03 the Fund remained fully invested in a diversified
portfolio of major, medium-sized and junior gold and
mining company shares active in N. America, Australasia,
Africa, Russia and many other countries, as well as
a large position in the metals themselves (10% silver
+ 15% gold = 25% of total) at month end.
In
August, we kept our high exposure to physical gold and
silver (metals have lagged shares). Since month end
we have added palladium. We bought Wheaton River, Gabriel
Resources, Ivanhoe, Goldfields, Harmony and Rio Narcea.
We sold out of Buryatzoloto, Bema Gold, Newmont, Aber
Diamond, Royal Gold. We also sold down in Northern Orion
and Coeur d'Alene (after a very profitable run).
The
logic of a fully-fledged bull market in gold improves
by the day (huge central bank liquidity, WGC exchange
traded funds, Chinese gold market liberalisation, renewed
corporate activity, some - unofficial - inflation targeting
in Japan and elsewhere). A Battle Royal is going on
near the recent gold price highs between the "speculators"
(long) and corporates (short). This battle will decide
the medium destiny for gold. We think that the long
side will triumph in the end. But we caution our investors
that failure of gold to breach USD 400 may cause a short
term share correction.
| ASSET
ALLOCATION (31/8/03) |
TEN
LARGEST HOLDINGS (64% of fund) |
| Gold
and resource shares 75% |
1.
Gold Bullion 15% |
| |
2.
Silver Bullion 10% |
| Bullion
(silver and gold) 25% |
3.
Coeur d'Alene 7% |
| |
4.
Northern Orion Wts 6% |
| Cash
0% |
5.
Ivanhoe Mines 5% |
| |
6.
Gabriel Res 5% |
| |
7.
Harmony Gold Mines 4% |
| |
8.
Cambior 4% |
| |
9.
Goldfields 4% |
| |
10.
Golden Star Res 4% |
| PERFORMANCE
IN USD (net of fees) to end August 2003 |
| Since
inception (20/2/03): |
| |
20/2/03
|
31/8/03
|
%
change
|
| P&C
Global Gold and Natural Resources Fund |
1000
|
1480.98
|
+48.1%
|
| Merrill
Lynch Int'l Gold and General Fund |
2.79
|
3.46
|
+24.0%
|
| FTSE
Gold Mines Index |
1240
|
1515
|
+22.2%
|
| |
|
|
|
| Gold
bullion |
352
|
376
|
+6.7%
|
| Silver
bullion |
4.65
|
5.13
|
+10.3%
|
| |
|
|
|
| Note:
Past performance does not guarantee future results.
All prices and comparative numbers are unaudited
and for indication purposes only. |
| PERCENTAGE
PERFORMANCE RECORD to end August 2003 |
 |
|
