Old Mutual launches gold and silver fund

New York (Feb 18)  Old Mutual Global Investors (OMGI) is to launch a gold and silver fund next month in response to what it described as investors’ increased demand for diversifying strategies.

The fund will diversify its exposure though a combination of indirect investment in gold and silver bullion with selected precious metal mining equities.

The fund will be managed by Ned Naylor- Leyland, who moved across to the fund house in September 2015 from Quilter Cheviot, Old Mutual’s discretionary management arm.

Mr Naylor-Leyland will work with analyst Joe Lunn and investment administrator Amelia Bowyer, having previously also worked with the pair at Quilter Cheviot.

After falling for the past three years, the price of gold rallied at the start of 2016 as risk appetite waned. Bullion reached a 12-month high of $1,260 earlier this month, though prices have since dropped back to the $1,210 mark.

“Gold and silver prices have fallen to levels from which they have rebounded strongly in previous bear market cycles and look set to rise again in popularity as an asset class over the course of 2016,” Mr Naylor-Leyland said.

OMGI managing director Warren Tonkinson added: “As investors increasingly look for alternatives to diversify their portfolios, now is the perfect time to launch the Old Mutual Gold & Silver fund.”

Source: FTadviser