BlackRock Gold and General Downgraded

Fund's ability to beat the benchmark being restricted by limits on stock holdings, say Morningstar analysts, who have downgraded the fund to Bronze

James Gard 14 June, 2019 | 11:45AM
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Gold bars

BlackRock Gold and General has been downgraded to Bronze by Morningstar analysts amid concerns about the strategy’s ability to consistently outperform.

Analysts Peter Brunt and Fatima Khizou say European fund regulations are holding BlackRock Gold and General back: under Ucits rules, a fund can't have more than 10% of its portfolio in any single holding. That means the fund is now “underweight” key stocks in the FTSE Gold Mines Index, which could limit its potential gains. Mergers in the sector, such as that between Randgold Resources and Barrick Gold last year, lead to key firms taking up bigger proportions of the index.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Agnico Eagle Mines Ltd64.74 CAD0.00Rating
Barrick Gold Corp23.00 CAD0.00Rating
BlackRock Gold and General D Acc1,183.21 GBP-3.10Rating

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James Gard  is content editor for


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