It has been a long time coming, but the rally in gold mining stocks has boosted sector-focused Golden Prospect Precious Metals [LON:GPM], an investment trust which delivers exposure to growth in this area. The London-listed trust has returned 45% over the last 12 months and year to date is up 36%.
A gold-focused strategy like this is bound to do well at a time when the gold price is on a run and many investors are questioning the dollar's role as the world's reserve currency. This trust seems to be proving that an actively managed strategy can also beat the index, and has performed well against some of the passively managed options out there.
The trust's managers report that they remain very bullish on this sector, as many gold mining stocks continue to be relatively cheap, cash generation is high, and they reckon gold mining stocks themselves could outstrip the gold price in terms of performance. This is certainly an investment trust to watch.
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