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Mutual Fund News

Gold funds glittered as bullion hit new highs

FUNDS REPORTER

Precious metals equity funds shone the brightest in November as the price of gold kept hitting fresh highs.

This group gained an average of 15.6 per cent as bullion surged to end the month at over $1,180 (U.S.) per ounce in New York.

Among the biggest gainers were funds holding more small-to mid-capitalization gold stocks.

Sentry Select Precious Metals Growth led the way last month with a 22.3-per-cent gain. Sprott Gold and Precious Metals Fund climbed 20.7 per cent.

Manager Kevin McLean, who runs the Sentry Select fund, has been bullish on gold because of the weakening supply.

While he has been expecting the gold price to rise by about $100 a year in recent years, he is now suggesting the yellow metal could rise higher than $100 annually for several years.

Many mutual funds posted higher returns than the iShares CDN Gold Sector exchange-traded fund.

This ETF, which is nearly 50-per-cent invested in big players like Barrick Gold Corp., Goldcorp Inc. and Newmont Mining Corp., gained 15.3-per-cent.

Rising gold stocks also helped to move Canadian equity and natural resource funds, which rose an average of 4.6 per cent last month.

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Top fund classes for November

Top 5 Grp Avg. 1 mo. Rtrn Grp. Avg. YTD
Precious Metals Equity15.6%72.0%
Canadian Equity4.6%26.6%
Natural Resources Equity4.6%51.8%
Canadian Small or Mid Cap Equity4.6%41.4%
Health Care Equity4.5%9.7%
Bottom 5
Japanese Equity-2.4%-7.4%
U.S. Money Market0.0%0.3%
Canadian Money Market0.0%0.2%
Retail Venture Capital0.1%-4.4%
Asia Pacific Equity0.5%21.9%
Source: Globe Investor as of Nov. 30

© 2007 The Globe and Mail. All rights reserved.

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