In 2017, BankInvestmentConsultant ranked the 20 worst performing mutual funds by lowest percent return and found that all but three of the worst performers are in three natural resources sectors: energy, gold, and real estate.
# |
Name |
Symbol |
YTD Return |
3-Yr Return |
Expense Ratio |
20 |
Janus Henderson Contrarian |
JACNX |
4.64% |
0.77% |
0.70% |
19 |
T Rowe Price Real Estate |
TRREX |
4.57% |
5.97% |
0.74% |
18 |
Oppenheimer Real Estate |
OREAX |
4.50% |
5.27% |
1.33% |
17 |
JPMorgan Small Cap Value |
PSOPX |
4.12% |
9.68% |
0.99% |
16 |
USAA Precious Metals & Minerals |
USAGX |
3.80% |
1.79% |
1.22% |
15 |
Fidelity Select Gold |
FSAGX |
3.34% |
5.84% |
0.84% |
14 |
Poplar Forest Partners |
IPFPX |
2.97% |
7.19% |
1.00% |
13 |
Vanguard Energy |
VGENX |
0.03% |
0.42% |
0.41% |
As noted, natural resources and real estate appear prominently in this list. Some funds, such as USAA Precious Metals and Minerals (USAGX) and Fidelity Select Gold (FSAGX), have made similar lists in the past, while others are first timers.
Others still, like Oppenheimer Real Estate (OREAX), are offerings by firms or issuers whose other products have previously made such a list (e.g., Oppenheimer Gold & Special Minerals [OPGSX], or Vanguard Energy [VGENX] and previously ranked fund Vanguard Precious Metals and Mining [VGPMX]).
The mutual funds listed above performed poorly, but all generated positive returns. The 12 funds listed below, however, generated losses, with some having trended red for several years:
# |
Name |
Symbol |
YTD Return |
3-Yr Return |
Expense Ratio |
12 |
Jhancock Natural Resources NAV |
JHNRX |
-1.23% |
-2.82% |
0.97% |
11 |
Victory Global Natural Resources |
RSNRX |
-1.36% |
-3.87% |
1.48% |
10 |
Ivy Natural Resources |
IGNAX |
-2.10% |
-2.63% |
1.72% |
9 |
Prudential Jennison Natural Resources |
PRGNX |
-2.59% |
-3.90% |
1.95% |
8 |
Franklin Gold and Precious Metals |
FKRCX |
-5.66% |
2.86% |
1.11% |
7 |
Franklin Natural Resources |
FRNRX |
-5.77% |
-3.79% |
1.06% |
6 |
Fidelity Select Natural Resources |
FNARX |
-5.94% |
-1.57% |
0.84% |
5 |
Spirit of America Energy |
SOAEX |
-6.61% |
-9.78% |
1.44% |
4 |
Fidelity Select Energy |
FSENX |
-8.15% |
-0.87% |
0.79% |
3 |
VanEck Global Hard Assets |
GHAAX |
-8.68% |
-5.37% |
1.38% |
2 |
Invesco Energy Inv |
FSTEX |
-11.66% |
-9.11% |
1.27% |
1 |
Fairholme |
FAIRX |
-13.27% |
-0.73% |
1.03% |
Of the bottom 12, only one (Franklin Gold and Precious Metals) had a positive three-year return, while others, such as Franklin Natural Resources (FRNRX), experienced a notably negative three-year return. Spirit of America Energy (SOAEX) had both a negative 2017 return and a significantly negative three-year return (-6.61% YTD, -9.78% three-year), while Invesco Energy Inv (FSTEX) fared abysmally on both accounts with -11.66% YTD and -9.11% three-year returns.
Others, such as Prudential Jennison Natural Resources (PRGNX) not only featured negative returns, but also a high expense ratio (PRGNX's was 1.95%).
Like numbers 20 through 13, a fair number of natural resources mutual funds made the cut, including a handful of repeat offenders, such as John Hancock's JHNRX and Victory Global Natural Resources (RSNRX).
If you have invested with a broker or financial adviser who has recommended or overconcentrated your position in one of these poorly performing mutual funds—especially those with a multi-year negative return or high expense ratio—and these financially harmful investments were unsuitable given your investment objectives or risk tolerance, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.