The fund held 9.7 per cent in gold and reduced this to 4.7 per cent in December last year.
The managers at T Bailey sold some of the gold in favour of commodities such as agriculture.
Philippa Gee, head of sales, marketing and communications for T Bailey, said while fund managers favoured gold in the long-term, because of the stage of the economic cycle there was a move from hard to soft commodities.
She said: "In the short-term we have our sold gold in the cautious managed fund. We have gone into soft commodities and bought an agriculture exchange traded fund. This is because of where we are in the cycle, soft commodities are more attractive."
Jason Evans, partner of Bristol-based IFA Kohn Cougar, said gold was not a 'proper' investment.
He said: "It is a speculative investment because it does not have an earnings stream. No one can put a proper price on gold.
"People perceive gold to be a safe haven and a storer of value and when investors are worried about the value of the dollar they pile into gold but no one can determine its proper price."
Bradley George, co-portfolio manager for the Investec Global Gold Fund, said the degree of investment demand for gold was likely to force a peak that is nearer $1300 an ounce over the next six months with $1000 an ounce becoming the long-term floor.