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BlackRock Gold & General Inclusive - Class A - Accumulation (GBP)

Sell:1,192.85p Buy:1,261.20p Change: 21.43p (1.76%)
Prices as at 26 May 2022
Change: 21.43p (1.76%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 26 May 2022
Change: 21.43p (1.76%)
Prices as at 26 May 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund mainly invests in large and medium-sized gold mining companies. It's managed by an experienced and well-resourced team. We think it's a reasonable choice for exposure to this specialist area.

A focus on a single, specialist sector can cause significant volatility though. Overall we prefer to invest with fund managers who have the freedom to dip in and out of specialist areas as and when they spot opportunities, rather than those who have to be fully invested in those areas all the time.

Our view on the sector

Gold funds invest mostly in the shares of gold and precious metal mining companies, although some have a small amount of exposure to gold bullion and other metals. The key for mining companies is to keep their costs of production lower than the price of gold. If, over the long term, the gold price rises and mining companies can keep costs under control, profits should rise and share prices should follow. Lots of gold mining companies allowed costs to spiral out of control when the gold price was rising and felt the consequences when the gold price fell from 2012 to the end of 2015. Mining companies, and gold funds, subsequently performed poorly. There's some evidence to suggest mining companies are turning things around by cutting costs and hiring new senior management teams. Gold is a specialist sector though and investments should be made for the long term within a diversified portfolio.

Performance Analysis

The fund's performed well over the long run but it's been a bumpy ride for investors.

The sector went through a particularly tough time between 2011 and 2016. This was mainly down to poor decisions made by managers of gold mining companies. Instead of keeping a tight rein on costs and returning excess profits to shareholders as dividends, they allowed costs to spiral and took part in uneconomical projects or expensive acquisitions. This meant lots of mining companies didn't manage to translate a rising gold price into higher profits.

Evy Hambro focuses on mining companies that keep costs low and grow production. He thinks these companies will perform better over the long run and could hold up a bit better when the sector goes though tougher times.

Investment Philosophy

Evy Hambro looks for companies that use cash wisely, keep costs low, invest in growing production and pay out excess cash to investors as dividends. He avoids companies that squander cash, over promise and under deliver and have no long term strategy.

Process and Portfolio Construction

As well as considering the prospects for individual companies, the manager and his team think about factors that could affect the price of gold and other commodities. That includes investor sentiment and the levels of supply and demand. They build this into their company analysis and look for companies that could do well in a variety of economic conditions over the long term.

The team think good management is key to a company's success so meeting with them is an important part of the process. They look for companies with high quality gold reserves that keep costs low. They prefer mature businesses with mines already in production or on the verge of production, rather than those still exploring for gold. They often find good opportunities in less developed countries. These have the potential for high rewards, but are also considered higher risk.

The manager tends to focus on larger and medium-sized companies, but has the flexibility to invest in higher-risk smaller companies.

question mark Manager Track Record Based on HL Quantitative Research

  • BGF World Gold A2 USD
  • BlackRock Gold & General A Acc
  • FTSE Gold Mines TR

Fund Track Record

25/05/17 to 25/05/18 25/05/18 to 25/05/19 25/05/19 to 25/05/20 25/05/20 to 25/05/21 25/05/21 to 25/05/22
Annual return -13.24% -2.42% 71.89% -2.81% -12.39%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

BlackRock was founded in 1988, growing steadily until the mergers with Merrill Lynch Investment Managers and Barclays Global Investors in 2006 and 2009, respectively. These resulted in a significant increase in assets under management and have turned BlackRock into a global company with deep roots in every region across the globe.

The range of BlackRock funds reflects this reach, with actively managed and tracker funds covering multiple asset classes over six continents.

Information about the fund

Fund manager biography

manager photo
Manager Name: Tom Holl
Manager start date: 1 July 2015
Manager located in: London

Thomas Holl, Vice President and portfolio manager, is a member of the Natural Resources team within BlackRock's EMEA Fundamental Equity Portfolio Management Group. He is responsible for covering the mining and gold sectors. Mr. Holl moved to his current role in 2008. His service with the firm dates back to 2006, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, Mr. Holl was a member of the Global Equity team and the Real Estate team as a member of the graduate training program. Mr. Holl earned a BA degree, with honors, in Land Economy from Cambridge University in 2006.

manager photo
Manager Name: Evy Hambro
Manager start date: 1 April 2009
Manager located in: London

Evy Hambro , Managing Director, is the joint Chief Investment Officer of BlackRock's Natural Resources Equity team. He is responsible for the management of BGF World Mining, BGF World Gold, BlackRock Gold and General Fund and BlackRock World Mining Trust. He is also co-manager of BlackRock's Natural Resources Hedge Fund and manger of a number of segregated portfolios. Mr. Hambro's service with the firm dates back to 1994, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. Mr. Hambro earned a BSc degree, with honours, in marketing, from Newcastle University in 1994.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account