Global Resources Investment Trust has published its first set of accounts. these cover the period from launch to the end of August 2014. Over that period the net asset value fell by 28.5% and the share price fell by 66% to 34p. Since then the falls have worsened so that, at the date of producing the statement the NAV was 45.6% down since launch at 51.1p and the share price 73% down at 26.75p. they have no plan to pay a dividend. Gearing, provided by their Convertible Unsecured Loan Stock, has risen to 17.6%.
The problem has been the weakness in commodity markets which have turned out to be worse than they had anticipated earlier in the year. They particularly highlight the gold and silver prices in this regard (gold was 41% of their portfolio). Two stocks that did relatively well in this environment were Merrex Gold and IncaOne. The Chairman notes the early success with Merrex (which quadrupled in value), they took some profits on this investment before it gave up a good part of that gain.
You can read more about this fund in our research note here.
GRIT : Tough period for Global Resources