COLLEGE PLANNING | ESTATE PLANNING | INVESTING | PORTFOLIO SPOTLIGHT | REAL ESTATE | RETIREMENT | TAX PLANNING
First Eagle Gold Fund
TICKER
ASSETS
FEGIX
$ 2.2 billion
PERFORMANCE |
1 yr . |
3 yr . |
5 yr . |
10 yr . |
15 yr . |
|
-1.48% |
-3.31% |
11.08 % |
5.17 % |
2.74 % |
TOP 5 HOLDINGS Gold bullion ; Wheaton Precious Metals Corp .; Newmont Corp .; Barrick Gold Corp .; Alamos Gold Inc .
CONTACT INFO
800-747-2008 • firsteagle . com
ALLOCATION BY ASSET CLASS ( As a % of portfolio )
■ Gold Mining Stocks 67.56 %
■ Gold Bullion 17.29 %
■ Short-Term , Cash & Cash Equivalents 10.31 %
■ Silver Bullion 4.84 %
Performance and asset numbers as of 1 / 5 / 24 . Holdings as of 11 / 30 / 23 . Sector weightings as of 9 / 30 / 23 . Sources : First Eagle Investments and Morningstar .
The Case For Gold In A Fickle World
The First Eagle Gold Fund has been a leader in its field for 30 years . By Jeff Schlegel
FEW IF ANY FINANCIAL ASSETS HAVE THE LONGEVITY and charisma of gold . The yellow metal sparkles in jewelry , is awarded to first-place finishers in athletic events and has played an important role in the world ’ s monetary affairs for millennia . It has long been viewed as a symbol of wealth , and it ’ s considered a so-called safe-haven asset during calamitous times .
The last point plays into gold ’ s reputation as being a store of value , yet gold isn ’ t immune to volatile price swings . Factors that affect the price of gold range from inflation and deflation to fluctuations in the U . S . dollar , interest rate movements and geopolitical turmoil , among other things . Think back to 2022 , when the conflicting forces of the Russia-Ukraine war , soaring inflation , aggressive Federal Reserve interest rate hikes and a strong U . S . dollar took gold on a wild ride that gave it a strong start to the year before it plunged nearly 18 % between early March and early November .
The precious metal rallied to finish the year with a 0.3 % gain , in part because the dollar weakened in the fourth quarter , which benefited gold because it ’ s priced in dollars and a weaker dollar makes gold less expensive to buy . It also got a boost from strong gold demand from central banks , whose purchases offset outflows in exchange-traded funds holding physical gold . Gold ’ s small gain was a victory in a year when the S & P 500 sank 19 % and the Bloomberg U . S . Aggregate Bond Index dropped 13 %.
Astute market timers could have made a killing by correctly playing gold ’ s mood swings . But astute market timing is hard to do consistently for gold or any asset class , which is why gold advocates believe the metal should have a dedicated place in investment portfolios as a hedge against the vicissitudes of a fickle world .
“ We believe it ’ s important to have a strategic position in gold as a potential hedge against the unknowns ,” says Thomas Kertsos , co-portfolio manager at the First Eagle Gold Fund . He stresses the importance of viewing gold as a strategic hedge rather than a speculation hedge .
JANUARY / FEBRUARY 2024 | FINANCIAL ADVISOR MAGAZINE | 45