Christopher Berlet on Tracking the Performance of Managed Gold Funds

June 6, 2024 — Christopher J. Berlet, CFA, President, and CIO of MineralFunds.com, recently discussed the tracking and performance of managed gold funds with InvestorNews host Pat Bolland. MineralFunds.com has been monitoring gold funds since 1995, providing detailed analysis and actionable market intelligence. Berlet highlighted that there are around 100 managed gold funds globally, with about six funds reporting monthly and 20 funds reporting quarterly under the 13F requirements. The remaining funds report semi-annually, governed by mutual fund laws. This frequency of reporting reveals fluctuations in assets under management (AUM) due to changes in gold prices and market conditions. As Berlet explained, “What you’re seeing is assets under management decreased for BlackRock because of the reporting period and that’s the most recent reporting period available on the full asset allocation for that fund.”

Berlet emphasized the significance of tracking new company holdings within these funds. He noted that the majority of the funds’ investments are in Canadian companies, with 55% of the money raised in various jurisdictions, such as the United States and Germany, being invested in Canada. This strategic focus on Canada and Australia makes up 70% of the world market for gold companies. He elaborated, “For instance, for VanEck, VanEck is a great leader in this regard… we can see new names that they’re adopting and they’re high-quality good investment names that they have passed.” The most recent report identified new names such as Snowline Gold Corp. (TSXV: SGD | OTCQB: SNWGF), MAG Silver Corp. (TSX: MAG | NYSE American: MAG), and Montage Gold Corp. (TSXV: MAU), providing valuable insights into emerging opportunities in the gold market. Additionally, Berlet highlighted the role of active managers in making informed investment decisions, contrasting this with the broader, more passive strategies of ETFs.