Journey of a Wealth Planner: 152 Gold Funds in Malaysia

Tuesday, July 21, 2020

152 Gold Funds in Malaysia

152 Gold Funds in Malaysia

I am not a fan of gold investment.

Gold prices has gone up from USD1500 to USD1800 per ounce since the beginning of this year. The historical chart and returns shown below are taken from goldprice.org.

Total returns for 20 years is 549.62%, meaning annualised returns for 20 years is 10.3%. Not bad indeed.

That said, however, the investors has to endure for the past ten years. The current price is back to the peak around 2011-2013. I remember a friend asked me back then whether she should buy gold. I remember telling her I am not a fan of gold. I think she bought into it still but I am not sure does she still hold it till this date.

Normally, gold price will go up in times of uncertainty. So the current trend is due to Covid-19? In today's fund briefing by a local fund house, their opinion is the US presidency elections, and the Covid-19 pandemic may bring uncertainties in the near future. So, for investors who might be looking for some hedge against any uncertainties, gold fund could be part of the portfolio.

So, let's say an investors wants some gold fund, what options he/she has?

China funds in Phillip Mutual's platform

Equity (retail)

Precious Metal Securities
RHB Gold and General Fund

How / where do they invest?

Listed info below is extracted from the June 2020 factsheet.

Precious Metals Securities

for capital appreciation
Shariah-based
global equity and equity-related securities
in companies engaged in activities related to gold, silver, platinum or other precious metals.
95% of the fund is invested into DWS Noor Precious Metal Securities Fund
91.67% in gold-related companies
top 5 holdings:- Barrick Gold Corp, Newmont Corp, Franco-Nevada Corp, Kirkland Lake Gold Ltd, and AngloGold Ashanti Ltd
top countries:- 50.30% in Canada, 13.26% in Australia, 11.12% in US, 10.93% in South Africa.
3-year Fund Volatility is 29.5 Very High.

Gold and General Fund

in securities of corporations (whether or not listed on any stock exchange, and in any part of the world)
whose business (in any part of the world) is or is substantially in the mining or extraction of gold, silver or precious metals (e.g. platinum, palladium, rhodium etc.), bulk commodities (e.g. coal, iron ore, steel etc.), base metals of all kinds (e.g. copper, aluminium, nickel, zinc, lead tin etc.), and other commodities (e.g. industrial minerals, titanium dioxide, borates etc.) and it includes the mining or extraction of oil, gas, coal and alternative energy or other commodities or other minerals.
95% invested into United Gold and General Fund
83.16% into gold-related companies
top 5 holdings:- Agnico Eagle Mines Ltd, Newmont Corp, Barrick Gold Corp, BHP Group Plc, and Kirkland Lake Gold Corp.
top countries:- 38.64% in Canada, 18.11% in Australia, 12.27% in UK, 10.00% in South Africa.
3-year Fund Volatility is 26.7 Very High.

Ranking in Morningstar Malaysia and Lipper Leader

Precious Metals Securities and RHB Gold and General Fund do not have any star in Moningstar Malaysia. (5 stars being the best)

In Lipper Leader, Precious Metals Securities and RHB Gold and General Fund has no ranking in terms of Total Return and Consistent Return; and has "1" for their ranking in Preservation. (5 being the best)

Performance of the retail funds (within Phillip Mutual's platform only)

3-months