Fund of the week: Holding out for a gold bounce

While this fund was walloped by the collapse in the gold price, it's well positioned for a recovery.

Having a tough year? Spare a thought for Ani Markova and Robert Lyon, managers of the Smith & Williamson Global Gold & Resources Fund. Its price has dropped 33% so far this year and 13% last year. Gold mining is out of favour and it has broad exposure to around 120 stocks of all sizes, and 60% in mid- and small-cap names. Two-thirds are gold miners, with the remainder precious metals and minerals miners.

The fund's skew towards smaller firms means it was hit dramatically when the gold price tanked. Its second-largest holding is Tahoe Resources, a Canadian junior miner worth C$2bn. But this gives the fund a distinct profile, says Markova.

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Central Fund of Canada Cls A5.1%
Tahoe Resources Inc4.7%
Goldcorp Inc4.3%
Argonaut Gold Inc3.8%
B2Gold Corp3.4%
Regis Resources Ltd3.0%
Silver Wheaton Corp3.0%
Agnico Eagle Mines2.9%
Randgold Resources2.8%
Eldorado Gold Corp2.7%
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