Fund of the week: Well placed to profit from gold
Jan 13, 2012
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“We certainly remain very bullish on the long-term outlook for gold,” says Ani Markova in an interview with Citywire. The co-manager (pictured) of the Smith & Williamson Global Gold & Resources fund believes gold is in a secular bull market – macro-economic and geopolitical factors will see the metal appreciate over the next few years.
The fund, which is 80% invested in Canada and America, aims for long-term capital growth through investment in firms that mine gold and other precious metals, as well as in the metals themselves. Of the fund, 63% is invested in gold miners. Launched in 2004, fund managers Robert Lyon, Ani Markova, Bob Farquharson and Charles Oliver, oversee a £68.6m portfolio. The fund has returned 115.7% over the past three years, or 94.9% on a five-year view.
Markova is watching developments in the eurozone and Northern America closely. “[Gold] is the one asset governments cannot print. It will be the benchmark of what things are worth over the long term,” she says. But while the price of gold bullion reached a record high of $1,920 in early September, gold equities have failed to keep up. “We think this is a fantastic buying opportunity for the equities, given our optimistic view for the commodity.”
While investing in gold equities carries a risk, says Thisismoney.co.uk, the ongoing rise in the gold price should underpin prices. “The Smith & Williamson Global Gold & Resources fund has the advantage of being managed in Toronto where it has excellent access to the management of the mining firms, engineers and stocks listed in Canada.”
Contact: 020-7131 8100.
Global Gold & Resources Fund top ten holdings
| Name of holding | % of assets |
|---|
| Central Fund of Canada |
7.3 |
| Goldcorp |
5.0 |
| Eldorado Gold |
3.6 |
| Franco Nevada |
2.8 |
| Barrick Gold |
2.8 |
| Alacer Gold |
2.7 |
| Semafo |
2.6 |
| Fresnillo |
2.6 |
| Tahoe Resources |
2.5 |
| B2Gold |
2.5 |
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