News releases

Schroders’ commodities team launch first gold equities fund

30/06/2016

Today, Schroders announces the launch of Schroder ISF[1] Global Gold[2]. The fund will actively invest in global gold and other precious metals equities in a UCITS framework.  It will allow both institutional and intermediary investors exposure to gold at an interesting time for the precious metal.

The fund will be managed by James Luke and Mark Lacey, fund managers in Schroders’ commodities team. The unconstrained, bottom up investment strategy will utilise their expertise in stock picking, along with Schroders commodity team’s expertise and research in underlying commodities. The fund has the flexibility to invest across other precious metal stocks, such as silver and platinum when there may be opportunities based on the underlying commodity’s outlook, as well as hold cash when the team feel it necessary.  

James Luke has over 10 years of investment experience and is a precious metals specialist. Mark Lacey has over 20 years of investment experience, as a fund manager specialising in bottom up stock picking within commodities.

John Troiano, Global Head of Distribution, said:

“We have a strong commodities capability at Schroders, which we are continuing to grow. Gold companies are near 10 and even 15 year lows and while current sentiment remains negative, we are beginning to see signs that the fundamentals are turning positive for these companies. Schroder ISF Global Gold will allow investors to participate in any turnaround in gold equities.”

James Luke and Mark Lacey, fund managers, commented on their current outlook:

“We are now at an important inflection point. Gold’s appeal as an investment asset is increasing following a period of extreme negative sentiment towards both the metal and the gold producers. We expect physical gold prices to continue recovering in the coming years, driven primarily by continued negative real interest rates and increased global macro risks. The recent Brexit result is a reminder of those risks. Higher gold prices will in turn boost returns from the gold mining sector.

Following 15 years of underperformance relative to the gold price, the gold producers have become very cheap and are discounting gold prices significantly less than current spot prices. The gold company management teams are focused on returns to shareholders and unlike the last decade we do not expect a return to poorly considered ‘growth at all costs’ strategy coupled with value destructive M&A. The renewed focus on returns discipline coupled with higher gold prices has the potential to drive significant improvements in free cash flow from the best managed companies.”

 

For further information, please contact:

Lucy Cotter                                           Tel: +44 (0)20 7658 3365/ lucy.cotter@schroders.com

Sarah Deutscher                                    Tel: +44 (0)20 7658 6139/ sarah.deutscher@schroders.com

Notes to Editors

For trade press only.  To view the latest press releases from Schroders visit: http://ir.schroders.com/media

Schroders plc

Schroders is a global asset management company £324.9 billion (€409.7 billion/US$466.9 billion) under management as at 31 March 2016. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.   

With one of the largest networks of offices of any dedicated asset management company, we operate from 38 offices in 28 countries across Europe, the Americas, Asia and the Middle East.  Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority.  For regular updates by e-mail please register online at www.schroders.com. for our alerting service.

 


[1] Schroder International Selection Fund is referred to as Schroder ISF throughout

[2] The fund launched on 29 June 2016 

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