Nimrod Capital plans to launch a closed-ended fund investing in smaller gold stocks and mining shares.
The group says an anomaly has opened up with gold spot prices close to $1,000 (£608) an ounce but the share prices of smaller gold companies lagging the upward momentum.
Nimrod Capital was set up last year by Marc Gordon and Richard Bolchover, both directors of Close Fund Management before they left the group in March 2007.
The new venture received Financial Services Authority (FSA) approval in October.
The company says it is launching the investment trust because distressed selling last year by investors forced to liquidate their holdings, coupled with a general flight from equities, has produced a discrepancy between stock and spot prices.
The fund will focus on gold producers, building a portfolio of 20-25 stocks to take advantage of the positive outlook for the commodity.
The manager, advised by a team of mining professionals with many years’ experience in the industry, will use stringent criteria for the companies the trust invests in to ensure they do not face financing issues. They must either be fully funded or able to raise further equity or debt finance if the need arises.
The trust will have an annual management fee of 0.65% with a 10% hurdle rate not payable until after two full years of performance.
It will be listed on the London Specialist Fund Market and Nimrod hopes it will raise up to £50m before its expected listing later this month.