Schroders has launched an equities fund which invests in gold and other precious metal to give investors the chance to tap into the sector.
Managed by James Luke and Mark Lacey, the Schroder ISF Global Gold fund has the flexibility to invest across precious metal stocks, such as silver and platinum, as well as hold cash.
Mr Lacey said we are now at an “important inflection point”, pointing to the growing appeal of gold as an investment asset after a period of extreme negative sentiment.
As a result, he said he expects physical gold prices to continue recovering in the coming years, driven by negative interest rates and global macro risks.
Mr Lacey said: “Gold producers have become very cheap and are discounting gold prices significantly after 15 years of underperformance relative to the gold price.”
John Troiano, global head of distribution at Schroders, said the Ucits-compliant fund will allow investors to participate in the turnaround of gold equities.
The two managers - who have 30 years of investment experience between them - use an unconstrained, bottom up investment strategy.
Speaking about the gold sector generally, Ben Yearsley, investment director at the Wealth Club, said: “Since the start of the year, gold has clearly been the asset class to have been invested in, benefitting from an increase in the gold price on the back of heightened uncertainty and also sterling’s weakness.
“Sectors and markets often get written off, however, this year’s performance shows that even the most unloved sectors have their time in the sun.”
katherine.denham@ft.com
