Tilney halves gold exposure in its fund range

16 July 2018

Investment management group Tilney has halved its exposure to physical gold in favour of short-dated US Treasury Inflation-Protected Securities (TIPS) across its central strategies. This includes its flagship Multi-Asset Portfolio (MAP) fund range which holds over £1.67 billion of assets for both clients of intermediaries and direct investors*.

Ben Seager-Scott, Chief Investment Strategist at Tilney, commented:

“The gold trade, which we initiated at the end of 2015, has served portfolios well, especially as we moved through a period where markets have been driven more by liquidity than fundamentals. With the investment landscape changing, it seems appropriate to review these positions, and begin taking profits. The gold positions effectively substituted for distorted fixed income markets which are now close to normalising in the US.

“US Treasuries appear to have regained the characteristic of a key risk-off trade. Additionally, normalising interest rates in the US increases the opportunity cost of holding gold as a non-yielding asset. With gold having done its job, now we can start returning to a more traditional footing. In place of gold, we have increased our positions in short-dated US TIPS, which we believe will still offer some portfolio protection during risk-off periods. In the meantime, we anticipate a decent real return from the carry, and with breakevens close to the 2% target, the potential for protection against upside inflation risk is attractive.”


*Multi Asset Portfolios (MAP) funds

There are seven MAP funds, each tailored to suit different investment needs and risk tolerances. The funds are managed by Chris Godding, CIO, who chairs the asset allocation committee, with fund ideas contributed by Tilney’s research team. The funds include:

  1. Maximum Growth – maximise growth by investing in global stock markets
  2. Aggressive Growth – achieve growth by investing into an adventurous portfolio
  3. Growth – growth by investing through a diverse portfolio
  4. Income and Growth – balancing between modestly growing funds whilst providing a regular source of income
  5. Income – producing a quarterly income
  6. Conservative – preserving the value of investment
  7. Defensive – modest growth of funds with low risk

Important Information:

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This press release does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Past performance is not a guide to future performance. This article is based on our opinions which may change without notice.

Different funds may carry varying levels of risk depending on the geographical region and industry sector(s) in which they invest. You should make yourself aware of these specific risks prior to investing.

The Tilney Bestinvest Multi-asset Portfolios are administered by Investment Fund Services Limited (IFSL), a subsidiary of Marlborough, one of Europe’s leading financial groups. Funds within each Portfolio are chosen and managed by our research team but it is up to you to choose the Portfolio that is right for you. If you are in doubt as to the suitability of an investment please contact one of our advisers.

About Tilney

Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years.  Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.

We have won numerous awards. Tilney has been awarded Best Conventional Advisory Service at the 2018 City of London Wealth Management Awards, Best Advisory Service in the 2015 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. Bestinvest was voted Best SIPP Provider and Best Fund Platform at the 2017 City of London Wealth Management Awards, Best Direct SIPP Provider at the YourMoney.com Awards 2017, Best Stocks & Shares ISA Provider at the 2017 Shares Awards, as well as Best Self Select ISA Provider, Best Online/Execution-only Stockbroker and Best Investment Platform 2017 at the FT and Investors Chronicle Investment and Wealth Management Awards, as voted by readers of the FT and Investors Chronicle.

Headquartered in Mayfair, London, the Tilney Group employs over 1,000 staff across our network of 30 offices, enabling us to support clients with a local service throughout the UK.