ASA's Strengths

Why ASA Deserves to Be Preserved

ASA Gold and Precious Metals has a unique structure, a clear mandate, and a compelling track record. The Fund was founded in 1958 with a focus on the precious metals and mining sector—and continues to serve as a distinctive vehicle for accessing this space.

A Revitalized Mandate

ASA is a closed-end fund dedicated to long-term capital appreciation through investments in companies engaged in the exploration, development, or production of precious metals. Since Merk Investments became the investment adviser in April 2019, ASA has returned to its roots—emphasizing smaller mining companies with strong growth potential, especially in the exploration and development stages.

Why a Closed-End Structure Works

Unlike mutual funds or ETFs, ASA’s closed-end structure allows it to take long-term positions without facing investor redemptions. This gives the Fund the ability to invest in less liquid names and participate in private placements, including deals with warrants. The strategy requires patient capital and specialized knowledge—and ASA is built for that.

ASA is incorporated in Bermuda and operates under an SEC exemptive order as a U.S. investment company. This structure adds regulatory and administrative complexity—but it also enables ASA to serve as a unique, publicly listed vehicle for global mining exposure. It is well-suited for an actively managed equity strategy, but poorly matched to fixed income approaches due to higher overhead, limited flexibility, and likely regulatory hurdles.

Strong Performance

ASA’s risk-adjusted performance has been among the strongest in the industry since Peter Maletis became portfolio manager in April 2019, later joined by Jamie Holman. The Fund has outperformed key benchmarks and most publicly available funds in the precious metals space.

That performance has been achieved despite significant governance disruption at the board level attributable to Saba-supported directors—highlighting the focus and continuity of ASA’s investment team. While outside observers may conflate board composition with investment outcomes, portfolio management has remained fully independent and mission-driven throughout. 

Had ASA been converted into a fixed income fund—as Saba has suggested—investors would have missed the gold rally. Also, Saba’s typical tool, a tender offer to capture the discount, may have delivered only a fraction of that value—especially given ASA’s concentration in less liquid small-cap mining stocks. In such cases, the anticipation of sales can depress the value of these holdings, meaning participants in the tender may only capture a portion of the discount.

Performance shown April 1, 2019 through March 31, 2025. 

📎 See full historical performance, peer rankings, and index comparisons.

Shareholder-Friendly Actions

ASA has taken a number of steps designed to enhance value and improve transparency, including:

• Share Repurchase Program – Reducing the Fund’s discount to NAV while enhancing per-share value.
• Voluntary Fee Waivers – Merk Investments has provided advisory fee waivers.
• Dividend Commitment – ASA has paid uninterrupted dividends since 1958. In 2024, the semiannual dividend was doubled, and it has since been raised again.
• Transparency & Engagement – Monthly webinars, published holdings, and regular updates have helped shareholders stay informed and engaged.
• Stewardship – ASA’s governance was historically focused on long-term value creation and responsive to all shareholders’ interests. That stability began to erode after Saba-backed directors joined the board in April 2024 and became actively disruptive by October—when they took steps to retain their own legal counsel at shareholder expense, accelerating dysfunction and impeding collaboration.

A Platform With Purpose

ASA offers investors unique access to the global gold and precious metals sector—especially to smaller, under-the-radar companies not easily found in ETFs or mutual funds. For shareholders who value this exposure, ASA remains a rare and valuable tool.

ASA’s structure gives it the flexibility to invest where others cannot—and recent performance shows how that advantage can be realized. If ASA’s investment focus were fundamentally altered, shareholders could face both diminished opportunity and increased costs. Any decision to repurpose ASA or alter its investment strategy should rest with shareholders—fully informed of what the Fund is currently delivering.

Source for performance is Bloomberg. Peter Maletis began managing ASA on April 1, 2019. On April 12, 2019, ASA shareholders approved Merk Investments as the Fund’s investment manager. Jamie Holman joined the ASA portfolio management team on April 1, 2022.

Past performance is no guarantee of future results. Current performance may differ from that shown. ASA concentrates in the gold and precious minerals sector. This sector may be more volatile than other industries and may be affected by movements in commodity prices triggered by international monetary and political developments. The Company is a non-diversified fund and, as such, may invest in fewer investments. ASA Gold and Precious Metals Limited may invest in smaller- sized companies that may be more volatile and less liquid than larger, more-established companies. Investments in foreign securities, especially those in the emerging markets, may involve increased risk as well as exposure to currency fluctuations. Shares of closed-end funds frequently trade at a discount to their net asset value.