While the gold price has been volatile over the last year, it has remained above the lows reached in 2015. In this brief commentary, Portfolio Manager Thomas Kertsos and Research Analyst Max Belmont offer their insights into current trends.
To mark the Fund's 30-year anniversary on April 10th, Harold Levy recalls the creation of the the Fund of America strategy, reflects on what's changed over 30 years and reaffirms his commitment to providing prudent stewardship of shareholders' assets.
We think the alternative to benchmark-oriented investing is active value management that's oriented to absolute - not relative - returns.
Investor capital continues to pour out of active vehicles and into passive ones. Investors evidently believe that passive funds are attractive because their fees have been low and their returns have been good. In our view, this is an overly simplistic way to think about today’s market environment. Whether in equities or in fixed income, passive strategies attempt to replicate the broader returns of the markets. If the broader markets themselves are priced for low returns, investors who choose passive vehicles face the prospect of singularly disappointing returns over the long term.
Investors in the First Eagle Global Fund have generally stayed invested substantially longer than the average mutual fund investor. We think downside protection is one of the reasons.