Page 19 - DIY Investor Magazine - May 2019

3 OUR DIFFERENCE
Our unique, actively managed approach may mean a small allocation to the Merian Gold & Silver Fund could offer similar potential benefits to your portfolio as a larger holding in pure gold, for example in an exchange-traded fund (ETF).
THE FUND AIMS TO ADD EXTRA VALUE BY ACTIVELY BLENDING SILVER WITH GOLD
Dynamically including silver in the portfolio offers the potential to achieve higher returns when the market conditions are right, as silver typically increases in value faster than gold when precious metal prices are rising, although it declines
faster when prices are falling.
The fund manager aims to add value by increasing exposure to silver when prices are rising, and reducing it when they are falling.
THE FUND ACTIVELY BLENDS EXPOSURE TO BULLION, WITH EXPOSURE TO MINING COMPANY SHARES
Taking exposure to shares in companies that mine gold and silver also offers the potential to generate superior returns when gold and silver prices are rising, as mining company shares tend to rise (and fall) more than the prices of the metals themselves.
As with the blending of gold and silver, the mix of exposure to mining shares and the metals themselves
is actively managed with a view to adding value as market conditions evolve.
GOVERNANCE MATTERS: IN THE WORLD OF PRECIOUS METALS, KNOWING WHAT YOU OWN IS EXTREMELY IMPORTANT. DO YOU?
Through our active approach and rigourous research, the fund aims to take exposure to bullion that is stored and traced to the highest global standards. Similarly, the fund will only take exposure to mining companies operating with the highest standards of governance and employee welfare. We don’t believe that an ETF can offer such assurances.
MERIAN GOLD & SILVER FUND
AIMING TO ADD VALUE THROUGH ACTIVE MANAGEMENT AS MARKET CONDITIONS EVOLVE
BULLISH SCENARIO Overweight silver
Underweight bullion
Silv er equities
45%
Gold equities
40% Bullion 15%
DEFENSIVE SCENARIO Underweight silver
Overweight bullion
20%
30% 50%
A SECTOR WHERE SPECIALIST KNOWLEDGE IS KEY
Ned Naylor-Leyland (pictured centre) joined the company
in 2015 and is the fund’s manager. He has over 15 years’ investment industry experience, having worked at Smith & Williamson, before founding a dedicated precious metals fund for Cheviot Asset Management. Ned is supported by Joe Lunn and Chris Mahoney. Joe is a mining engineer who worked in the industry in South Africa and Australia before returning to London to work as a mining analyst. Joe is the team’s dedicated mining equity research analyst. Chris, in his role as assistant portfolio manager, performs both portfolio management and equity research functions.
CONTINUED OVERLEAF
Merian Global Investors