Aberdeen multi-manager team sells out of gold

28 April 2011 8:00 am | By Joanne Ellul

Aberdeen’s multi-manager team has sold all of its gold exposure within its £800m fund range.

The team has phased out its position in the BlackRock gold and general equity fund as well as a physical gold exchange traded fund. The BlackRock position represented a 2-3 per cent holding across the majority of the range while the ETF stood at 2 per cent.

Aberdeen multi-manager Scott Spencer (pictured) says the majority of the assets taken out are currently being held in cash.

He says: “Longer term, we can still see a case for gold and I can imagine us going back into it but the current run led to us moving out of the asset. We may look at it again if it goes towards the $1,300 an ounce mark.”

The price of gold has been rising steadily in recent months, reaching $1,518.10 an ounce on Monday.

Chelsea Financial Services managing director Darius McDermott says: “Gold is not at a record high if you add any form of inflation indexing to it, which is why some people are still really keen on gold. In the last two months, the gold price has gone up and gold equities have lagged.Gold equities are 30 per centundervalued.”

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