 April 1 (Bloomberg) -- Merrill Lynch World Gold, the world's largest gold fund with $8.2 billion in assets, dropped 10 percent last month as prices fell from a record.
World Gold, managed by Graham Birch in London, has gained 6.2 percent this year, data compiledby Bloomberg showed.
Gold fell 5.9 percent in March after the Federal Reserve helped rescue Bear Stearns Cos. and revived confidence in the banking system.
“It was truly an exceptional month in terms of stuff happening,” Birch said in a phone interview yesterday. “You've got to expect some ripples from that.”
The percentage decline in the Merrill Lynch World Gold Fund was the biggest monthly drop since April 2004 and follows gains of 11 percent in February and 6 percent in January. A peer group of 57 precious metals funds dropped more than 10 percent for March, according to data on Bloomberg.
Gold has dropped 11 percent from a record $1,032.70 an ounce on March 17. The metal for immediate delivery slid |
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$20.97, or 2.3 percent, to $895.91 an ounce as of 9:36 a.m. in London, slipping below $900 for the first time since Feb. 15.
The Midas Fund, managed by Thomas Winmill in New York, fell more than 11 percent last month, leaving it 4.1 percent down this year.
“As the gold price recovers and exceeds recent highs, we expect Midas Fund to outperform,” Winmill said in an e-mailed message yesterday. Midas has $283 million in assets.
Other gold funds that declined include the $5.28 billion Vanguard Precious Metals and Mining Fund managed by Graham French in London. It retreated 7.1 percent last month. French didn't immediately return a phone call seeking comment.
The CF Ruffer Baker Steel Gold Fund with 98 million pounds ($195 million) in assets slumped more than 10 percent last month, the biggest drop since August. Its manager Trevor Steel in London didn't return a phone call seeking comment.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net.
Last Updated: April 1, 2008 05:00 EDT |
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