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Jupiter Gold And Silver
A truly unique fund, Jupiter Gold & Silver invests in both physical gold and silver bullion, as well as gold and silver mining companies. Manager Ned Naylor-Leyland is a passionate advocate for his asset class and believes investors should strongly consider some gold and silver exposure for their portfolios.
Previously Merian Gold & Silver
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Ned joined the company in 2015 and manages the Merian Gold & Silver Fund. With nearly two decades of experience in precious metals investing, he founded a dedicated monetary metals fund at Quilter Cheviot in 2009. Ned began his career at Smith & Williamson and holds a BA (Hons) in Spanish from the University of Bristol, graduating in 1998.
Chris joined the company in 2016 and has managed the Gold & Silver Fund since its inception that same year. Before joining Jupiter, he was a portfolio manager at Merian Global Investors (formerly Old Mutual Global Investors). Chris began his career in 2011 after graduating from the University of Leeds with a degree in Management. He holds the Investment Management Certificate and has completed the Financial Markets & Portfolio Construction Theory units of the CISI Chartered Wealth Manager Qualification.
Before joining Jupiter, Joe worked as a portfolio manager and mining analyst at Merian Global Investors, focusing on gold and silver. He also served as an analyst on a precious metals fund at Quilter Cheviot. Joe began his investment career in 2005 as a mining analyst at Ocean Equities, Insinger de Beaufort, and finnCap. His background includes two years in Johannesburg as a mining consultant and early experience as a mining engineer with Homestake Mining Company in Western Australia. Joe graduated from the Camborne School of Mines in 1996 and holds an MBA from the University of Warwick.
Ned joined the company in 2015 and manages the Merian Gold & Silver Fund. With nearly two decades of experience in precious metals investing, he founded a dedicated monetary metals fund at Quilter Cheviot in 2009. Ned began his career at Smith & Williamson and holds a BA (Hons) in Spanish from the University of Bristol, graduating in 1998.
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Company Description
Founded in 1985, Jupiter Asset Management has grown from a specialist investment boutique to a global fund management company. It provides a range of products from bond and equity funds to multi-asset strategies for both retail and institutional clients. Jupiter is a strong proponent of active management and therefore gives its managers the freedom to run their funds their way, without having to adhere to a 'house' view. In July 2020, Jupiter completed its acquisition of Merian Global Investors.
Fund Performance
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Talking Factsheet
Investment process
The fund's underlying philosophy is that gold is money: Ned believes gold and silver should be thought of as a currency, not a commodity. The fund combines physical gold and silver bullion with mining shares, which offer deep relative value. The fund’s neutral position is 50:50 gold/silver. Ned will dynamically move the portfolio between bullion and miners, depending on his macroeconomic view and valuations. In a more defensive scenario, the fund will own more bullion and more gold. In a more optimistic scenario (for gold and silver) the fund will have a much greater weight to miners and silver.
The fund is very sensitive to geopolitical risk and typically avoids mining companies which invest in dangerous parts of the world. Governance is critically important and the team prefers a concentrated portfolio of companies whose assets are in countries where society and politics are stable. Out of 200 equities, 80 make it into the investment universe, with 30 to 40 modelled in more detail.
Investments are typically held for the long term and the fund’s turnover is expected to be between 20 and 40% per annum.
The physical bullion in the portfolio is predominantly held through the Sprott Physical Gold Trust, Sprott Physical Silver Trust and the Sprott Physical Gold and Silver Trust. Ned and his team undertake a very high level of due diligence on the vehicles in which the fund’s physical bullion is held.
Risk
Since its launch in March 2016, the fund has tended to have a greater weight to miners over bullion, and silver over gold. Both these factors have made the fund more volatile and increased risk. Since launch it has been almost three times as volatile as the UK stock market*. However, absolute performance has thus far been strong overall. At this stage we think it is too early to judge the fund on its risk-adjusted performance.
*Source: FE Analytics, Merian Gold & Silver R Acc GBP max drawdown and weekly volatility, 8 March 2016 to 8 October 2019.
ESG
ESG - Limited
The highly specialised nature of this fund, and the asset class it invests in, mean that broad-ranging ESG issues are difficult to implement. Ned invests in physical materials, as well as mining companies which are traditionally viewed as ESG laggards. However, that is not to say the fund simply ignores ESG issues. Ned will only look to invest in mining companies operating at the highest level of social welfare. Governance is also of particular importance, especially focusing on the location and political background of where his constituent companies operate from. This includes looking at factors such as the custodial practices of those companies that store the physical commodities, again, with only those operating at the highest level accepted. However, due to the nature of the asset class in which the fund operates, it is still likely to have a challenged ESG profile.
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