The Fund’s objectives, over rolling 5 year periods, are to provide capital growth by being exposed to a portfolio consisting principally of globally listed gold and precious metal equities and their related instruments, and outperform the FTSE Gold Mines Index expressed in AUD and after Management Fees and Usual Expenses, but remember that neither of these objectives is intended to be a forecast or promise. The Fund may not meet its investment objective. Neither returns nor the money you invest in the Fund is guaranteed. The Fund invests principally in equities of gold and precious metal companies globally, but with an ability to have up to 50% of net asset value invested in gold and precious metal bullion and futures.
The Baker Steel Gold Fund (“the Fund”) underperformed its index during the month, as the gold sector continued its recovery. With seismic economic and political shifts underway during this unprecedented time in history, we consider it entirely possible that gold is in the early stages of a once-in-a-generation upwards move.
Persistent low real interest rates and soaring debt are supportive for gold, while growing signs of a return of inflation presents a significant potential catalyst for the next leg higher for gold prices. Moreover, gold equities appear set to continue to benefit from margin expansion and improving profitability, while dividends appear likely to continue to increase. Gold equities appear undervalued on a fundamental basis and relative basis. The portfolio continues to be heavily focused on value and remains focused on high quality producers with strong shareholder returns policies.
What is Baker Steel Gold Baker Steel Gold is an Managed Funds investment product that is benchmarked against Credit Suisse AllHedge Fund Index and sits inside the Alternatives - Misc Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Baker Steel Gold has Assets Under Management of 13.17 M with a management fee of 1.82%, a performance fee of 0.00% and a buy/sell spread fee of 0.49%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Baker Steel Gold has returned 6.64% in the last month. The previous three years have returned 14.23% annualised and 31.88% each year since inception, which is when the Baker Steel Gold first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Baker Steel Gold first started, the Sharpe ratio is NA with an annualised volatility of 31.88%. The maximum drawdown of the investment product in the last 12 months is -17.03% and -76.1% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Baker Steel Gold has a 12-month excess return when compared to the Alternatives - Misc Index of 24.82% and 0.97% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Baker Steel Gold has produced Alpha over the Alternatives - Misc Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Alternatives - Misc Index category, you can click here for the Peer Investment Report.
What level of diversification will Baker Steel Gold provide? Baker Steel Gold has a correlation coefficient of 0.91 and a beta of 2.76 when compared to the Alternatives - Misc Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on Baker Steel Gold and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Baker Steel Gold with the Credit Suisse AllHedge Fund Index? For a full quantitative report on Baker Steel Gold compared to the Credit Suisse AllHedge Fund Index, you can click here.
Can I sort and compare the Baker Steel Gold to do my own analysis? To sort and compare the Baker Steel Gold financial metrics, please refer to the table above.
Has the Baker Steel Gold been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
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Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Baker Steel Gold. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - December 31, 2020 Baker Steel Gold Fund (“the Fund”) outperformed its Index during the month, as the gold sector rallied at year-end. 2020 will go down as one of the most challenging years on record for societies, economies and financial markets around the world. While the natural resources sector faced difficulties during 2020, precious metals delivered strong performance.
Gold producers have largely demonstrated operational resilience during the crisis, enabling them to emerge well-positioned to take advantage of supportive macroeconomic environment for gold. Low real interest rates, soaring debt and rising inflationary pressure suggest a positive outlook for gold in 2021. Gold producers’ margins are expanding, and dividends are increasing, yet the sector remains fundamentally undervalued.
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