AMG Gold – Mines & Metals
Fund size CHF 107.9m
Past performance is not a reliable indicator of future performance. Please note that the aforementioned performance is shown in the fund currency CHF (Swiss franc) and not Euro and therefore currency influences in investment currencies other than the fund currency are not taken into account in the performance shown.
The equity fund invests mainly in gold mining companies, with a selection of silver mining companies supplementing the fund composition. The equity fund is actively managed along the market cycles in gold and silver. The basis for this is the own fundamental and technical analysis. The top-down approach results in a concentrated portfolio of qualitatively convincing mining companies.
Portfolio Management
- Fritz Eggimann
- Executive Board, Partner
Portfolio Management - fritz.eggimann[at]serafin-am.com
- +41 (41) 726 71 75
- Bernhard Graf
- Portfolio Management
- bernhard.graf[at]serafin-am.com
- +41 (41) 726 71 74
Portfolio Management
- Fritz Eggimann
- Portfolio Management
- Bernhard Graf
- Portfolio Management
Learn more about the ESG fund classification
Sustainability / ESG
Brief profile:
AMG Gold - Mines & Metals Fund
Tap into the potential of gold and silver mining companies. Secure real assets in the ground!
Breakdown by sectors
Breakdown by currencies
Comment August 2023
Gold held up well in August despite the rise in US long rates. In contrast, most precious metals stocks had a very poor month. In this regard, the shares of small capitalized companies tended to do better than those of large ones. Quarterly results for Q2 were disappointing for many companies, especially as costs surprisingly increased for some companies. The reason this time was not higher input costs; rather, operations were not running optimally at these companies. Lower "grades" resulted in fewer ounces produced and therefore higher costs. We understand that "grades" are different in different zones and quarters vary accordingly. What we don't fully understand, however, is the failure of company IR departments to alert analysts to temporarily lower quarterly results. In every other sector, most companies report "better than expected." Not so in the precious metals sector. In Q2, among the producers in our portfolio, 10 companies were better than expected and 18 were worse, with the remainder neutral. These 18 companies saw some massive price losses after the numbers, which negatively impacted our performance. During the month, we slightly reduced positions of companies with African exposure and instead built up royalties. Royalties were the big outperformers in August (they lost less than the market). With an 8% weighting of Franco Nevada in GDX as an example, we always hold too little in the portfolio accordingly. SSR Mining stood out. Q2 numbers were as expected, but the outlook for lower costs has improved. The company forecasts production of 700,000 ounces of gold this year in Turkey and the US. Costs have risen above average to $1,660 over the past two years as poorer "grades" have been processed and production in Turkey has been temporarily halted. In the current 2nd semester, production should increase strongly due to better "grades" (expectation +30% compared to H1) and costs should decrease by almost 300 USD. The company also has a solid balance sheet and buys back its own shares every quarter. In H1, USD 100 million was returned to shareholders. Sentiment in the precious metals sector fell sharply in August, which is countercyclical for precious metals stocks. However, we need falling interest rates for the gold price to break out to the upside.
ESG implementation:
We take ESG aspects into account in the financial analysis and investment decision-making process, applying a combination of exclusion criteria and ESG integration approach in the investment process. The abbreviation ESG stands for "Environmental - Social - Governance".
For the analysis within the sustainability approach, we rely on data from selected third-party providers and, if necessary, on our own analyses. The analysts and portfolio management teams are responsible for both the financial analysis and the ESG analysis. In this way, we ensure that the assessment and implementation are carried out on a recurring basis by the decision-makers in the respective fund as part of a comprehensive and integrated investment process.
In our investment process, we do not per se exclude investments in companies with weaker ESG ratings: Companies that address the issue of sustainability convincingly and consistently can be interesting portfolio companies.
Latest ESG reporting:
- Classification with regard to U.N. Global Compact Ten Principles:
All portfolio companies in the fund comply with the U.N. Global Compact Ten Principles. - Current portfolio structure using the ESG Risk Rating (by Sustainalytics):
The above fund is a financial product within the meaning of Article 8 of Regulation (EU) 2019/2088 (Disclosure Regulation).
For more information on the fulfillment of environmental and/or social characteristics, please refer to the fund prospectus.
Sustainability-related disclosures
| Domicile of fund | Switzerland |
|---|---|
| Legal form | Contractual investment fund |
| Investment universe | Precious metal shares global |
| Investment manager | Serafin Asset Management Ltd, Zug |
| Management company | LLB Swiss Investment Ltd, Zurich |
| Custodian bank | Bank J. Safra Sarasin Ltd, Basel |
| Launch date | 18.04.2006 |
| Recommended investment horizon | 5 years |
| Reference currency | CHF |
| ISIN / Bloomberg-Ticker (respective Tranche) | A: CH0024686773 / AMGGMMF SW C: CH0197484386 / AMGGMMC SW H (FX-hedged): CH0420487941 / AMGGMMH SW |
| Distributions | distributing (Dividend & Capital Gain ) |
| Subscription and redemption | daily (cut-off 13.00 CET) |
| Performance Fee | 8% over 5% Hurdle, with High Water Mark |
| High Water Mark and Hurdle | CHF 226.74 |
| Tax transparency | CH, AT |
| Tax status Germany | Equity fund pursuant to InvStG with partial exemption |
| Registered for public distribution | CH, DE |
Gebührenstruktur
| Subscription and redemption fee | none |
|---|---|
| Management fee p.a. | Tranche A: 1.50% Tranche C: 1.00% Tranche H (FX-hedged): 1.00% |
| Total expense ratio p.a. (per 31.12.2022; TER, before profit sharing) | Tranche A: 1.73% Tranche C: 1.22% Tranche H (FX-hedged): 1.23% |
| Duration | Fund | XAU |
|---|---|---|
| 1 month | -5.4% | -5.3% |
| 3 months | -9.6% | -8.2% |
| 12 months | -5.6% | -0.7% |
| 3 years p.a. | -14.5% | -9.2% |
| 5 years p.a. | 5.2% | 9.1% |
| since inception p.a. | -2.3% | -3.9% |
| Year | ||
| 2023 | -14.7% | -11.8% |
| 2022 | -13.5% | -7.3% |
| 2021 | -13.8% | -5.3% |
| 2020 | 31.6% | 23.1% |
| 2019 | 43.9% | 48.7% |
| since inception | -33.0% | -50.0% |
Risk ratios (rolling over the last 3 years)
| Volatility (p.a.) | 32.3% |
|---|---|
| Sharpe ratio (-0.03% Risk free rate) | n/a |
| Beta (vs. XAU) | 1.01 |
The gross performance takes into account the costs incurred at fund level (e.g. management fee) without including the costs incurred at investor level (e.g. front-end load and custody fees). The net performance also takes into account an initial sales charge of 0.00% in the first period under review.