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Tailored for investment professionals this site provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future.

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Investec Global Gold Fund

A traditional safe haven during market corrections

Fund highlights

  • We offer a portfolio investing primarily in the shares of companies involved in gold mining. We can invest in explorers, developers and producers across all regions.
  • We believe that gold equities should outperform their underlying commodity prices over time. The Fund is primarily an equity portfolio, but has the flexibility to use direct commodity exposure (via Exchange Traded Commodities).
  • We have a clear investment philosophy and process which aims to identify companies which can outperform through commodity cycles. This focusses the portfolio on companies which can allocate capital effectively.

Attractions of owning gold

  • We believe the current environment points to the next structural gold upcycle.
    • Relative attractiveness of gold has increased with low and negative real rates.
    • Gold offers a currency devaluation hedge.
    • Gold is a traditional safe haven in period of elevated financial and political uncertainty.
    • Robust central bank and investment demand.
  • With low, and even negative correlation to other classes, gold should be considered a key building block to any portfolio. The diversification and "safe haven" benefits of gold are particularly evident in periods of market corrections (see table below).

Gold outperformed S&P 500 during all major correction, except in 1980–82

Source: Bloomberg

 

Benefits of investing in gold equities

We believe now is an opportune time to invest gold equities.

  • Gold equities provide leverage to movements in the gold price.
  • Profitability has returned to these producers through a gold price recovery and cost reductions.
  • The strong cashflow generation of these companies, and dividend potential, is attractive in a low growth world.

Following the industry restructuring we expect gold equities to continue to provide positive leverage to the rising gold price as well be able to protect value in a less favourable commodity price environment. The Investec Global Gold Fund has delivered outperformance against the index and, in bull markets, against physical gold since November 1990.

Investec Global Gold Fund vs. Physical gold performance since November 1990 (Nov 1990 = 100)

Source: Bloomberg, Investec Asset Management, since inception of fund on 31.12.99 to 30.09.17. NAV based, inclusive of all annual management fees but excluding all initial charges, gross income reinvested, in US$.

 

1 year 3 years p.a. 5 years p.a. 10 years p.a. Since inception p.a.**
Investec GSF Global Gold A Acc -13.5% 4.4% -11.1% -3.8%

3.8%

Euromoney Global Gold TR (pre 01.10.14 PR)** -10.2% 5.7% -13.0% -5.3% 0.7%
Relative performance -3.3% -1.3% 1.9% 1.6% 3.1%

 

Past performance should not be taken as a guide to the future, losses may be made. Data is not audited. Source: Morningstar, dates to 30.09.17, NAV based, inclusive of all annual management fees but excluding any initial charges, gross income reinvested, in US$. *Comparative index changed from Euromoney Global Gold PR to Euromoney Global Gold TR on 01.10.14. **Inception date 26.11.90.

 

Why Investec Asset Management for gold equities?

  • Investec Asset Management has a long history in commodities:
    • Commodities and emerging markets form part of our roots.
  • Our process is specifically designed for commodities and natural resource equities:
    • Built on proprietary commodity analysis
    • Focus on bottom-up equity analysis of high quality companies
    • ESG analysis ingrained in our fundamental equity research.
  • We have a specialist and highly motivated team:
    • A diverse team, with extensive relevant industry and financial experience
    • Key personnel in London and Cape Town focused solely on commodities.

George Cheveley

Portfolio Manager

Hanré Rossouw

Portfolio Manager

Fund size US$348.1m
Launch date 26.11.90
Domicile
Luxembourg
Comparative index Euromoney Global
Gold TR
Morningstar category Equity Precious Metals

Important Information

All information is as at 30.09.17 unless otherwise stated.

The Fund’s investment objectives and performance targets will not necessarily be achieved and there is no guarantee that these investments will make profits; losses may be made.

Fund specific risks:

Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean the value of the Fund may decrease whilst more broadly invested funds might grow.

Currency exchange: Changes in the relative values of different currencies may adversely affect the value of the Fund’s investments and any related income.

Derivatives: The use of derivatives is not intended to increase the overall level of risk in the Fund. However, the use of derivatives may still lead to large changes in the value of the Fund and includes the potential for large financial loss.

Liquidity: There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements from the Fund and/or large fluctuations in the value of the Fund which may lead to larger financial losses than might be anticipated.

Third party operational: The Fund’s operations depend on third parties. Investors in the Fund may suffer disruption or financial loss in the event of third-party operational failure.

Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. bankruptcy), the owners of their equity rank last in terms of any financial payment from that company.

Concentrated portfolio: The Fund invests in a relatively small number of individual holdings. This may mean the value of the Fund may fluctuate more widely than more broadly invested funds.

Some of the funds displayed on this page may not be registered in your region and will therefore not be available for sale . Please visit www.investecassetmanagement.com/registrations to check registration by country.