Schroders goes active on gold
Schroder Investment Management has re-named the Schroder AS Gold & Metals Fund to Schroder AS Gold and Precious Metals Fund, and changed the investment approach and objective in order to offer investors an actively managed fund focused on gold.
The investment house believes that factors such as rising inflation and the falling US dollar mean the bull market in gold will remain.
The fund will be actively managed by Paula Bujia, a senior manager on the Schroders’ commodities team, which manages $12.5bn in commodity funds.
The fund will invest in a range of instruments, including futures, swaps, physically-backed ETFs and equities. It aims to be 50-100% invested in gold, but can hold 0-50% in gold equities depending on the market outlook. It can invest up to 33% in other precious metals, such as silver and platinum. It can also hold up to 33% of the fund in cash.
The fund will be benchmarked against the NYSE Gold Bugs index, comprising 75% gold spot price and 25% gold equities.
Paula Bujia said: “We believe that the current investment environment should be very supportive for further increases in the gold price. The fund’s strategy also adds value against gold-backed ETFs due to diversification and the potential extra returns from investing in equities and in other precious metals.”