AMG Gold – Mines & Metals
Fund size CHF 121.6m
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
Tap into the potential of gold and silver mining companies. Secure real assets in the ground!
Publications
INVESTMENT INSIGHTS | GOLD
TWO PAGER | PRECIOUS METALS
Breakdown by sectors
Breakdown by currencies
Comment March 2024
The price of gold broke through the USD 2,075 resistance level in March and has remained above the USD 2,100 mark ever since. This has triggered a strong recovery in precious metal stocks. Nevertheless, we cannot yet speak of great optimism for gold miners. Although sentiment is no longer quite as negative as before, the inflow of money into the sector remains modest. The AMG Gold – Mines & Metals Fund performed very well in the month under review. Normally, the large companies in this sector start to rise first, while a rotation in the mid and smaller segments takes place as the movement progresses. In the current upward movement, however, the large companies have made less progress than the smaller ones. There has been a lack of buying by the generalists, who usually invest in shares with a high market capitalization. Compared to the beginning of the year, the Vaneck Gold Miners ETF (GDX) is still unchanged in USD terms, while the gold price is up. An anomaly. We had a meeting with the management of Kinross Gold Corp. (KGC). With an EV/EBITDA of 5x, the company is cheaply valued compared to similar competitors. To maintain the current gold production of around 2 million ounces over the next 10 years, Kinross will also need to invest in new projects. After deducting the investments, a gold price of USD 2,000 leaves around USD 500 million in free cash flow (FCF) per year. This will be used for dividends (2% dividend yield), debt reduction, and possible share buybacks. Kinross has sufficient new projects and will only participate in potential takeovers to a limited extent. Calibre Mining Corp. (CXB) was added to the GDX ETF on the third Friday of the month. This led to considerable buying in the run-up. It is not entirely understandable that the company announced a few days later that it would carry out a CAD 100 million capital increase to buy back advance financing. Another important factor for the gold mining sector is the price of copper. The largest copper producer in the world, Freeport-McNoRan Inc. (FCX), has the largest weight in our benchmark but is not represented in the GDX ETF. This makes the decision to keep a position in this company not always easy. We therefore held a position during the month but reduced it before the end of the month.
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 share class) | 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 31.12.2023; TER, before profit sharing) | Tranche A: 1.74% Tranche C: 1.24% Tranche H (FX-hedged): 1.24% |
| Duration | Fund | XAU |
|---|---|---|
| 1 month | 6.0% | 8.1% |
| 3 months | 26.6% | 27.0% |
| 12 months | 0.7% | 3.7% |
| 3 years p.a. | -6.3% | -1.6% |
| 5 years p.a. | 8.4% | 11.3% |
| since inception p.a. | -0.9% | -2.6% |
| Year | ||
| 2024 | 15.7% | 16.9% |
| 2023 | -7.0% | -5.4% |
| 2022 | -13.5% | -7.3% |
| 2021 | -13.8% | -5.3% |
| 2020 | 31.6% | 23.1% |
| since inception | -15.3% | -37.3% |
Risk ratios (rolling over the last 3 years)
| Volatility (p.a.) | 30.8% |
|---|---|
| Sharpe ratio (0.42% 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.