AMG Gold – Mines & Metals
Fund size CHF 135.5m
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 / ESGBrief 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 May 2023
The troy ounce of gold has been moving in a price range between USD 1,650 and USD 2,070 for just over three years. On May 3, the gold price rose to USD 2,064. As in August 2020 and March 2022, this annual high could not be maintained and profit-taking set in. There was great disappointment among gold stock investors that the price hurdle of USD 2,000 could again not be sustainably overcome. In addition, rising interest rates and a strengthening of the US dollar led to strong selling of shares of gold and silver producers in the reporting month. Since the high in May, this selling pressure led to a price correction in the gold and silver equities segment of about 14% and a negative monthly result. We used the lower share prices to buy back Hecla Mining, Gold Fields, AngloGold Ashanti, Iamgold and OceanaGold. Skeena Resources' management informed investors about a planned CAD 64 million capital increase. After the announcement, the stock lost almost 10%, which was about the dilution from the additional shares issued. Skeena Resources acquired Barrick Gold's "Eskay Creek" project, an old mine that mined 1.5 million ounces of gold at a gold grade of 15 grams per ton in the 1990s. After that, the mine was closed due to insufficient gold content. With a higher gold price than back then, mining and restarting the mine is extremely profitable today. The mine is located in the "Golden Triangle" of British Columbia, where Newmont operates large mines. With 3.3 million ounces of reserves and a 9-year mine life, it can produce just under 400,000 ounces annually. This and the lower investment costs should lead to increased takeover fantasies. Therefore, we used the announced capital increase to significantly expand our existing position in Skeena Resources.
The permanent gold purchases by the central banks continue to have a supporting effect on the price. For example, the Polish Central Bank announced that it has increased its gold reserves by 14.8 tons to 243.5 tons and intends to continue buying. Analysts at the Bank of Montreal (BMO) expect robust gold demand from central banks later this year, which will provide a tailwind for the gold price to finally surpass the USD 2,070 mark. In such an environment, gold stocks perform above average.
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 & precious metals |
| 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 | 2.5% | 2.7% |
| 3 months | -4.7% | -4.3% |
| 12 months | 6.6% | 8.0% |
| 3 years p.a. | -6.4% | -2.1% |
| 5 years p.a. | 4.9% | 7.4% |
| since inception p.a. | -1.3% | -3.1% |
| Year | ||
| 2023 | 2.2% | 2.7% |
| 2022 | -13.5% | -7.3% |
| 2021 | -13.8% | -5.3% |
| 2020 | 31.6% | 23.1% |
| 2019 | 43.9% | 48.7% |
| since inception | -19.6% | -41.7% |
Risk ratios (rolling over the last 3 years)
| Volatility (p.a.) | 35.9% |
|---|---|
| Sharpe ratio (-0.28% Risk free rate) | n/a |
| Beta (vs. XAU) | 1.04 |
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.