The P&C Global Gold and Natural Resources Fund rose
by 7% in November. Seed investors of 9 months ago have
made over 65%, after performance fees. We underperformed
the FTSE Gold Mines index for the first month since inception
(this was up 11%) in November, due to the large - 35%
- bullion position and a strong performance from large
caps which dominate the index. We are well ahead of the
FTSE Gold Mines index since inception (see "performance"
below), though our benchmark is USD cash, not an index.
As
at 30/11/03 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 (19% silver
+ 12% gold + 3% palladium = c35% of total) at month
end.
In
November, we increased the "beta" in the fund
by increasing shares. Gold and silver both mounted successful
attacks on their previous highs against the background
of a weak dollar (see previous reports). Additions were
made via Buenaventura, Kimberley Diamonds, Aurizon,
Southern Era, Southwestern Resources, Resolute Mining
options, Goldfields, Anglogold and Olympus Pacific Minerals.
We subscribed for about 4% of the fund in our first
unlisted (pre IPO) stock, African Minerals, due to list
in 1Q04 in Canada. The fund's directors will keep this
position under review. We are now valuing it at book
cost, USD 8.
The
momentum behind the gold bull market strengthens by
the day. Companies continue to de-hedge (hedging has
for long been cited as a negative for gold). Central
bank liquidity, the prospect of WGC exchange traded
funds, Chinese gold market liberalisation and renewed
corporate activity, as well as some - unofficial - inflation
targeting by Japan and elsewhere provide additional
support to the investment case for gold.
| ASSET
ALLOCATION (30/11/03) |
TEN
LARGEST HOLDINGS (60% of fund) |
| Gold
and resource shares 65% |
1.
Silver Bullion 19% |
| |
2.
Gold Bullion 12% |
| Silver,
gold, palladium 35% |
3.
Anglogold 5% |
| |
4.
Goldfields 4% |
| Cash
0% |
5.
African Minerals 4% |
| |
6.
Resolute Mining 4% |
| |
7.
Ivanhoe 3% |
| |
8.
Palladium bullion 3% |
| |
9.
Ashanti 3% |
| |
10.
Coeur d'Alene 3% |
| ASSET
ALLOCATION (per month) |
 |
| PERFORMANCE
IN USD (for initial investors) |
| Since
inception (20/2/03): |
| |
20/2/03
|
30/11/03
|
%
change
|
| P&C
Global Gold Fund (Gross NAV) |
1000
|
1737.84
|
+74%
|
| P&C
Global Gold Fund (Net NAV) |
1000
|
1649.30
|
+65%
|
| |
|
|
|
| FTSE
Gold Mines Index |
1240
|
1825.86
|
+47%
|
| Gold
bullion |
352
|
398
|
+13%
|
| Silver
bullion |
4.65
|
5.37
|
+15%
|
| |
|
|
|
| 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
|
|
| n/a |
-2.17
|
-1.47 |
3.14 |
7.97 |
1.81 |
8.76 |
17.2 |
4.06 |
6.82 |
6.52 |
|
|
