The fund, based on the 31st May valuation, rose by nearly 10% to USD 1083.44 in May. This figure includes all initial investment costs as well as set up and other costs. The FTSE Gold Mines Index (USD) was up by 11% in May and the Merrill Lynch International Gold and General Fund (USD) was up by 14%. We are ahead of this, a leading fund in the sector, by 7% and the FTSE Gold Index, by nearly 9% since inception. In May, Gold rose by 8% but Silver fell slightly.

As at 31/5/03, the fund was fully invested. We continue to hold 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.

In May, we reduced our big position in Randgold and sold Wheaton River. We took big positions in Harmony Gold, Thistle Mining and Lihir Gold. We also bought Aquarius Platinum and participated in warrants placed in Northern Orion Explorations in Canada.

The Advisers to the fund remain optimistic that a long-term gold bull market is on track. The return of share market confidence may perhaps slow the gold bull market for a while, but positive factors for gold shares (WGC exchange traded funds, Chinese gold market liberalisation, renewed corporate activity, massive global monetary stimulus etc) have improved markedly in the last month.