Schroders launches gold equities fund

Schroders’ commodities team has launched its first gold equities fund.

The fund, called Schroder ISF Global Gold, will actively invest in global gold and other precious metals equities in a Ucits framework, allowing both institutional and intermediary investors exposure to gold at an interesting time for the precious metal.

It has the flexibility to invest across other precious metal stocks, such as silver and platinum when there may be opportunities based on the underlying commodity’s outlook, as well as hold cash when the team feel it necessary.

The fund will be managed by James Luke and Mark Lacey, fund managers in Schroders’ commodities team. They will use an unconstrained bottom-up strategy to pick stocks for the fund.

Luke has over 10 years of investment experience and is a precious metals specialist, while Lacey has over 20 years investing experience, specialising in bottom up stock picking within commodities.

“Gold companies are near 10 and even 15 year lows and while current sentiment remains negative, we are beginning to see signs that the fundamentals are turning positive for these companies. Schroder ISF Global Gold will allow investors to participate in any turnaround in gold equities,” said John Troiano, global head of Distribution.

“We are now at an important inflection point,” Luke and Lacey said.

“We expect physical goldprices to continue recovering in the coming years, driven primarily by continued negative real interest rates and increased global macro risks. The recent Brexit result is a reminder of those risks,” they said.

In the wake of Brexit, gold funds have soared recently. 

Data on funds classified as investing in commodities by the UK Investment Association have seen their returns soar since voters in the UK decided to leave the EU – particulary those focused on gold.

Out of some 35 funds, just two have posted negative returns between 23-27 June on a sterling basis, while others have made double-digit returns in a few days, as investors have shifted towards safe haven assets.

 

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