Jupiter Gold & Silver Fund
Important Information
- The Fund invests predominantly in a portfolio of equity securities of companies engaged in activities related to gold and silver.
- The Fund is subject to concentration risk and the risk of investing in gold and silver related securities. The price of gold and silver and share prices of companies engaged in related activities may be volatile.
- The Fund is also subject to risks of investing in smaller companies and in other collective investment schemes/funds which may include closed-ended funds.
- It may invest in financial derivative instruments for hedging, efficient portfolio management and/or investment purposes. Such investments may involve risks (e.g. counterparty, leverage and liquidity risks) that could result in significant loss.
- Investment involves risk. Investors should read the offering document of the Fund for further details including the risk factors.
In a time of economic turmoil, monetary metals are of interest.
3 REASONS TO CONSIDER AN ACTIVELY MANAGED ALLOCATION TO GOLD AND SILVER
Central banks have injected vast amounts of stimulus into the system in the last two years, swelling their balance sheets to extreme levels. And unlike in 2008, this money is flowing into the real economy.
History tells us the result could be inflation – with negative real interest rates and a devaluing of fiat currencies, or those currencies that are not backed by a commodity such as gold or silver.
If the Federal Reserve were to enact even more extreme monetary policy, such as Modern Monetary Theory or `helicopter money’ (whereby a government prints large sums of money and distributes it to the public to encourage economic growth), in order to finance government spending plans, that would be supportive of holding gold to protect a portfolio against inflation.
The gold price typically moves inversely to ‘real’ interest rates – the rate of interest after taking into account the value-destructive effects of inflation. Market expectations for future real interest rates in the US have turned negative, meaning that some US Treasury bondholders could face losses in post-inflation terms. We believe there is a high likelihood of this trend continuing, and in our view it is an ideal environment to consider monetary metals.
‘Shrinkflation’, where products become smaller but cost the same, is a well-known phenomenon. It is harder to track than simple price rises but is a good example of how inflation can appear from ‘out of the blue.’
The investment objective of the Fund is to seek to achieve a total return by investing predominantly in listed equities. In seeking to achieve its investment objective, the fund aims to deliver a return, net of fees, greater than that of the composite benchmark comprising 50% Gold Price (XAU) and 50% FTSE Gold Mines Index, with net dividends re-invested over rolling 3 year periods.
- The fund manager aims to outperform gold to help allocators generate meaningful attribution
- Flexible and dynamic strategy that allocates to gold and silver bullion, and mining equities
- De-risked approach to investing in bullion and mining equities
Actively blending silver with gold
The manager aims to add value by increasing exposure to silver when prices are rising, and reducing exposure when prices are falling.
Active exposure to gold and silver mining company shares, alongside bullion
As with the blending of gold and silver, the mix of exposure to mining shares and the metals themselves is actively managed with a view to adding value as market conditions evolve.
WHY ALLOCATE TO SILVER ALONGSIDE PHYSICAL GOLD?
Including silver in the portfolio offers the potential for higher returns than a pure gold allocation. Silver prices tend to follow gold. Silver typically increases in value faster than gold when precious metal prices are rising. But because silver markets are smaller, silver prices also decline faster when both metals are falling.
Silver also has dual importance as an industrial component, as well being a monetary store of value.
There is growing demand for silver for use in green technologies, such as photovoltaic cells for solar panels, and it is widely used in electronics! Silver can be found in solar cells, water purifiers, touch screen & smartphones, electric vehicles and semiconductors.
Jupiter Gold & Silver Fund
Is there a piece missing from your portfolio? Learn why you might consider exposure to gold, silver and the shares of mining companies through this actively-managed fund.
Meet the team
About the fund manager
Literature
Click the button below to download all fund literature of Jupiter Gold & Silver Fund.
Latest insights from the team
What central banks are saying about gold
Outlook 2023: Time to think like a central banker about Gold
Risk-free, risky or just a reserve?
Alternatives come to the fore
Important information
Past performance is not indicative of future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.
This communication provides information relating to Jupiter Gold and Silver Fund (the “Fund”), which is a sub-fund of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.
This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Fund. Nothing in this communication constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the offering document (including the risk factors) and the key fact statement of the Fund (if applicable) which can be obtained from www.jupiteram.com. This communication has not been reviewed by the SFC.
The Fund is authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. Such authorisation is not a recommendation or endorsement of the Fund nor does it guarantee the commercial merits of the Fund or its performance. It does not mean that the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
This communication is issued by Jupiter Asset Management (Asia Pacific) Limited which is licensed to carry out Type 1 and Type 4 regulated activities in Hong Kong.
The net asset value of the Fund may have high volatility due to the nature of the asset class invested. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus.