Subject to regulatory approval it will be managed by Ned Naylor-Leyland, who joined OMGI from Quilter Cheviot in September 2015. It will be a sub-fund of the Dublin domiciled Old Mutual Global Investors Series Plc.
The fund will aim to deliver a total return by combining indirect exposure to gold and silver bullion, and ‘selected precious metals mining equities’. The management team will use a bottom-up stock selection process in order to identify companies that they believe will produce a good long-term returns.
The team will adjust the weighting of gold and silver related equity and equity-related securities, at various points throughout the market cycle, to create the optimal balance.
OMGI said the fund will be suitable for clients looking to diversify their portfolio and benefit from ‘the prospect of attractive long term growth in the gold and silver market.’
“I’m delighted to be at Old Mutual Global Investors working on the launch of a new gold and silver fund,” said Naylor-Leyland. In times of market turmoil, monetary metals have consistently been turned to as a safe haven for investors. 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.”
“As investors increasingly look for alternatives to diversify their portfolios, now is the perfect time to launch the Old Mutual Gold & Silver Fund,” added Warren Tonkinson, OMGI managing director.