IFSL SIM JUNIOR GOLD AND SILVER MINERS FUND is the new name of the JUNIOR GOLD fund as of 26th November 2021.
The prefix “IFSL” is introduced to reflect the intra group transfer of Authorised Corporate Director from Marlborough (MFM) to IFSL and the additional changes to link the Fund’s name more closely to its investment activities as well as refer to the Investment Manager which remains Sector Investment Managers Ltd (SIM), unchanged since the Fund’s inception in 2009.
The Fund continues to invest in mining companies rather than directly in precious metals and the approximate target weighting into silver mining companies has been recently increased by the Investment Manager to 40% of the Fund’s value (double of a historical 20% weight), with the balance invested primarily into gold miners.
This is in part due to silver’s growing industrial demand as a consequence of a global drive towards renewable energy, electrification of transportation and other technological developments that favour silver’s superior electric conductivity.
The Investment Manager believes that there are some attractive investment opportunities in silver mining companies, in addition to those in gold miners, that benefit from higher precious metals prices. In the current macro-economic outlook, with rising inflation and historically low interest rates, safe haven assets such as gold and silver bullion appear attractive to investors.
The Junior Gold & Silver MIners Fund, as it invests in smaller, earlier stage operations, tends to perform better in a rising precious metals price environment when the investee companies can see their profitability improve. The fund was particularly well positioned in the calendar year 2020 when it topped the annual performance table in the Morningstar Sector Equity Precious Metals category.
The Fund will continue to operate with the same main investing principles of avoiding politically unstable territories of operations and very early stage exploration risks.