Thoughts on JPM Natural Resources Fund?

If you want something with a bit more risk and a lot less boredom than a fund - maybe invest it in a self-select ISA and pick some individual stocks - there are plenty that are high risk and fun !!! (you could balance one or two of those with some more boring stocks).

Which seems to do terribly well in the long run. However, it is quite volatile, and it hasn't done brilliantly of late. I know nothing about the state of the commodities markets; have they been in the doldrums recently, or is this fund losing its way? Are things likely to get better? Really, i'd be interested to hear any thoughts of any kind on this fund. tom

I've been investing in this and its precursors ever since it was Ebor Commodity Trust, back in 1970.

It can be volatile, and doesn't track the FTSE index in any way. Every so often it goes apeshit, and that is a signal to take some profit. I took profits in 1993, 2002 and 2004, the rate of return since 1970 being 12.3% to date. Back in 1970, the yield was about 4%, but nowadays it is virtually zero.

Not for widows and orphans, but always an interesting ride.

Bitstring , from the wonderful person Tom Anderson said

Well, I own some (and it seems to have survived the last week reasonably well, compared to the major indices), however it has done well (30% PA growth since 2000, iirc) the last few years, so you have to decide which of the 3 following represents your view.....

a) It has done really well the last few years, so the managers are wizards and I should buy some more.

b) It has done really well the last few years, so it is due for a crash (if it kept growing 30% PA it would outweigh the global economy in less than a century).

c) It has done really well the last few years, but past performance is no guide to the future (see a, b, above).

Hmm. Yes, this is something i should think about. It might be more work and take more skill than i can manage, though. Also, i know that the sensible thing to do is buy to hold, but i'd always be tempted to fiddle with my position!

Thanks to everyone who replied.

tom

I invested in JPM Nat Resources a couple of years ago on the basis that it broadened my portfolio of ISA' s and on the basis that the need for resources will continue to grow, come what may. E.g Oil and gas will become less available and therefore the prices will continue to rise in the long term and therefore the value of the resources to find and convert these resources into usable comodities will also increase. therefore, although bumpy, overall this area will increase in value.

I have the same sorts of feelings about environmental issues. I want an ISA that deals with companies that are not just environmentally conscientious but who make all those thing associated with harnessing the environment e.g. who invests in wind turbines or mass heat exchangers or low energy bulbs etc -- what ever we thing about the environmental issues it is these companies that in my mind will flourish big time

Regs

John