Tilney Bestinvest has allocated to physical gold for the first ever time in its Multi-Asset Portfolio fund range.
Gareth Lewis, CIO and manager of the funds, which have more than £1bn in assets, says the central banks are “losing control of the macroeconomic environment” and strategies such as QE will “become discredited” leading him to reduce equity exposure and add gold.
“Gold has a low correlation with other risk assets and serves as a form of insurance should all the world’s central banks spark a round of competitive currency devaluation by loosening monetary policy further,” he says.
“We have been tactically underweight both equities and high yield since the summer. The move to include gold completes our phased move to de-risk our portfolios.”
Tilney Bestinvest has allocated to gold via a physical gold ETC, namely the Physical Gold ETC from ETF Securities.
There are seven funds in the Multi-Asset Portfolio range, each with different investment targets and risk tolerances.