Categories:Investments

Jupiter cuts Merlin gold weighting

  • Print
  • Comment

Jupiter has cut its gold weighting by about 2% across the £6.8 billion Merlin portfolios as it predicts the gold price will fall.

Gold reached record highs when it hit $1,900 an ounce in Asian trading overnight on August 22, but fell to $1,740 an ounce on August 24. On September 5, it was trading at $1,890.

Algy Smith-Maxwell, the co-head of the Jupiter Merlin range, says: “In August, our gold exposure reached between 9-10% across the portfolios. When we were in danger of breaking the 10% limit of exposure to a single sector, it was appropriate to take profits on gold and rotate the proceeds into First State Asia Pacific, which is a low-risk fund in a high beta environment.”

Smith-Maxwell predicts the gold price will fall further before it rises again, adding: “There is a risk that gold is in the early stages of going parabolic.”

But he says it is still appropriate to hold gold as an insurance policy. He says: “When we get the sense that the Federal Reserve is giving the right prescriptive medicine, we will exit gold.”

 

  • Print
  • Comment

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

The Money Marketing CPD Centre

Time spent reading about technical or regulatory issues can build your annual CPD hours. Log and plan your annual CPD for free with The Money Marketing CPD Centre.



Have your say Edit my profile/screen name

You must sign in to make a comment

Fund Data



Poll

Is the FCA right to ban fund groups from using dealing commission to pay for access to company executives?