A genuinely differentiated fund blending exposure to gold and silver bullion, and gold and silver mining equites.
Dynamic and differentiated
The Jupiter Gold & Silver Fund, managed by the highly experienced Ned Naylor-Leyland, blends gold and silver bullion listed funds (bullion), and gold and silver equities. The team rotates the weightings to gold and silver bullion and equity exposure according to its view of market conditions.
By focusing on listed gold and silver bullion funds, rather than exchange traded funds, Naylor-Leyland focuses on what he sees as a ‘best in class’ custodial practice. By adopting such a practice the bullion fund content can act as a secure physical platform for the mining equity component.
Silver, both in the form of bullion and silver mining equities, is added to the portfolio as a means of generating additional alpha.
Going for gold
In it to win it
Gain exposure to assets with the potential to perform in a more inflationary environment before a sharp rise in inflation – which is notoriously difficult to track accurately, and which often has a tendency to present itself with very little warning.
- Political uncertainty
In the present era of political uncertainty, gold is “apolitical” money. The US dollar is highly politicised, and its privileged role in the global financial system is increasingly being questioned. Gold is the only non-political currency, in that it isn’t issued by a central bank. Some countries, including China, are looking to fill the role historically played by the dollar, for example to buy oil. If this trend continues, the importance of the role of gold could grow significantly.
Exposure to silver and mining shares offers potential for superior returns – as these assets typically rise and fall by more than the gold price itself. The effect of the “boost” provided by these assets overs the price of gold itself in a rising market means that a relatively small allocation to the Fund can potentially offer similar portfolio diversification benefits to a larger holding in, for example, an ETF that is designed simply to track the “spot” price of gold bullion on the international markets.
- Central banks
Central banks have been talking about the possibility of interest rate rises and removing the monetary stimulus they injected into the financial system after the financial crisis, but so far hikes and stimulus removal have been modest. Amid market uncertainty, this could even go into reverse. We believe gold could be a beneficiary of such an environment.
Many of the world’s largest central banks allocate a significant proportion – or even the majority – of their total reserves in gold, including the US Federal Reserve (74%), Germany’s Bundesbank (69%), the Banca d’Italia (65%), the Banque de France (61%) and the Bank of England (8%).
The operating environment
Meet the team
About the fund manager
Key fund literature
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