The perils of investing in the raw

Article Abstract:

The 11 UK unit trusts investing in the commodity and energy sectors saw an average performance of a net loss of 19.6% on a bid-to-bid basis in the year to Jun 1997, disproving the widely-held view that investment funds specializing in commodities are likely to perform well at a time of economic recovery. The poor performance of unit trusts and investment funds in the commodity and energy sectors is partly the result of the collapse of regimes in eastern Europe, which prompted extensive dumping of raw materials. Further problems have been caused by investing in gold extraction companies.

Analysis, Mutual funds, Commodities

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When in doubt, sit on the fence

Article Abstract:

Some small investors are beginning to have reservations about index tracker funds as the rise of shares in the FTSE 100 index appears to be coming to an end. Many managers responsible for pooled investments such as unit trusts believe that investors should exercise caution in the current market conditions. There are doubts about the ability of tracker funds to perform better than managed funds when the market is declining, and it is wise to seek safety in larger and more liquid stocks.

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M&G goes off the boil

Article Abstract:

BESt Investment is advising that investors pull out of nine funds managed by M and G, one of the most highly respected fund managers in the UK. It believes that M and G has been negatively affected by the departure of many of the fund managers who made the company so successful in the 1980s and early 1990s. Furthermore, recent economic developments have not been favourable to traditional income stocks, value stocks and mid-cap stocks, areas in which M and G has a strong presence.

M and G Group

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