TM Darwin founder David Jane has doubled his gold exposure in the £4m multi-asset fund during the market volatility in August.
Jane increased his gold exposure from 4 per cent to 8 per cent, moving the fund away from other commodities such as agriculture. He says: “The gold price has made new highs and our gold exposure has been an absolute godsend, so we are sticking with it.”
Jane also reduced the risk of the fund by doubling the 20 per cent sterling government bond exposure to 40 per cent in August.
He says: “I have made this change to try to mitigate the currency volatility in the portfolio.”
Other fund of funds and multi-asset managers such as Jupiter’s Merlin team, Rathbones investment director David Coombs and Cazenove head of multi-manager Marcus Brookes have been reducing their exposure to gold.
Architas chief investment officer Caspar Rock, who oversees the multi-asset range, says: “I do not believe gold is a store of value. We do have some exposure through a diversified commodities fund but it is not just precious metals but oil and other physical commodities.”
Evolve Financial Planning managing director Jason Witcombe says: “We are not keen on recommending commodities where it is purely speculation on a price rather than a proper investment.”