The P&C Global Gold and Natural Resources Fund rose
by 3.3% in December, the 9th month of consecutive advances.
Seed investors of 10 months ago have made over 70%, after
performance fees. We again outperformed the FTSE Gold
Mines index (this was down 0.1%), due to the large - 30%
- bullion position and a strong performance from physical
silver and silver shares. We are ahead of the FTSE Gold
Mines index since inception (see "performance"
below), though our benchmark is USD cash, not an index.
As
at 31/12/03 the Fund remained invested in a diversified
portfolio of major, medium-sized and junior gold and
mining company shares active in North America, Australasia,
Africa, Russia and many other countries, as well as
a large physical position in the metals themselves (21%
silver + 12% gold + 5% palladium = c38% of total).
In
December we added to the physical silver and palladium
positions. Gold (cUSD400) and silver (cUSD6) both penetrated
key resistance points aided by dollar weakness. We also
increased Ivanhoe. We remind investors that our first
unlisted (pre IPO) stock, African Minerals, is due to
list in 1Q 2004 in North America. The Fund's directors
continue to value it at book cost USD8.
Various
themes may predominate in 2004. First, greater volatility
in mining shares (fairly valued relative to the physical)
now that many realise that a gold bull market is in
place. Second, a possible catch up by South African
mining shares (if the Rand weakens). Third, a possible
run in silver (USD10/oz is possible). Fourth, a continuation
of the trend (see Barrick's recent U-turn) of de-hedging
production. We maintain our confidence in the investment
case for gold and, in particular, the physical precious
metals sector, where the Fund has the flexibility to
have a large weighting.
| ASSET
ALLOCATION (31/12/03) |
TEN
LARGEST HOLDINGS (62% of fund) |
| Gold
and resource shares 62% |
1.
Silver Bullion 21% |
| |
2.
Gold Bullion 12% |
| Silver,
gold, palladium 38% |
3.
Palladium 5% |
| |
4.
Anglogold 4% |
| Cash
0% |
5.
Goldfields 4% |
| |
6.
African Minerals 4% (pre IPO subsc) |
| |
7.
Ivanhoe 4% |
| |
8.
Resolute Mining 3% |
| |
9.
Coeur d'Alene 3% |
| |
10.
Ashanti 2% |
| ASSET
ALLOCATION (per month) |
 |
| PERFORMANCE
IN USD (for initial investors) |
| Since
inception (20/2/03): |
| |
20/2/03
|
31/12/03
|
%
change
|
| P&C
Global Gold Fund (Gross NAV) |
1000
|
1795.48
|
+80%
|
| P&C
Global Gold Fund (Net NAV) |
1000
|
1700.02
|
+70%
|
| |
|
|
|
| FTSE
Gold Mines Index |
1240
|
1824.70
|
+47%
|
| Gold
bullion |
352
|
416
|
+18%
|
| Silver
bullion |
4.65
|
5.97
|
+28%
|
| |
|
|
|
| Note:
Past performance does not guarantee future results.
All prices and comparative numbers are unaudited
and for indication purposes only. |
| TRACK
RECORD |
| Percentage
monthly performance after performance fees (net) |
 |
| Percentage
monthly performance after performance fees (net) |
| 2003 |
| Jan |
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec |
| n/a |
-2.17
|
-1.47 |
3.14 |
7.97 |
1.81 |
8.76 |
17.2 |
4.06 |
6.82 |
6.52 |
3.08 |
|
