The fund firm says most of the world’s growth is generated from Asia and emerging markets. It holds Asian and emerging markets funds in the independent growth portfolio but wanted access via a global fund that will move within these markets and out of them when better opportunities arise elsewhere.
The multi-manager has also bought back into the Merrill Lynch gold & general fund which it holds across its multi-manager portfolios. The company says this is a fund to which it allocates actively. The fund, which invests in gold mining companies and other precious metal-related stocks, is described by Henderson as a leveraged play on the gold price.
Gold is regarded as a hedge against inflation, a declining dollar and US recession. It is also a commodity with limited supply and demand is growing due to strong economic growth in emerging markets such as India, which could drive up prices.
Co-fund manager Katy Gladstone says: “We think gold might do well on a short to medium-term view. Our global outlook is a bit more cautious than a few months or even weeks ago. There are significant issues in financials and we think there is potential for more rate downs. There is a risk that banks might tighten up their lending policies but there is a limit to what the Federal Reserve can do because it is caught between weakening growth, fears of rising inflation and a weakening dollar.”