Gold might be safe option


Investors should take a closer look at including gold in their portfolios at times of growing uncertainty in 2019, ETF Securities has said.
According to the firm, investors could benefit from gold’s ability to appreciate in a bear market due to its low or negative correlation with stocks and bonds.
This could be of particular importance given broader geopolitical risks, fuelled by growing US-China tensions and Brexit, ETF Securities’ chief executive, Kris Walesby, said.
“It’s also far from clear how aggressive the US Fed might be as it continues to raise interest rates. And at home we have a housing market downturn and a looming election throwing up headwinds,” he noted.
The firm’s GOLD ETF, which offered investors exposure to movements in gold prices in Australian dollars, jumped in December by 9.15 per cent, compared to a 0.37 per cent decline in the ASX 200.
According to Walesby, the fund’s performance was driven by the vital role that gold played in a “sensibly diversified portfolio”.
“Through our GOLD ETF, investors can have that diversification without any related transport, storage or insurance costs.”
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.