UOB Asset Management has launched a new gold strategy in Singapore with an equal-weight structure that blends physically backed gold bullion and gold miners.
The strategy, called UOBAM Gold+, will invest 49% into the SPDR Gold MiniShares Trust ETF, and 49% into the United Gold & General Fund; 2% will be held as a cash buffer.
The strategy will rebalance quarterly to reach equal allocations, which the company said will enable investors to benefit from the stability of physical gold during market volatility while capturing the growth potential of gold mining stocks.
The launch comes as gold prices punch through $3,500 per ounce to hit all-time highs as investors bet on interest rate cuts.
UOB AM said the SPDR Gold MiniShares Trust ETF “offers one of the most competitive expense ratios in the market”. It has a gross expense ratio of 0.10%, according to a factsheet from State Street Global Advisors.
Rachel Ong, chief marketing officer of UOB AM, said: “In today’s uncertain market, investors are actively seeking smarter ways to protect and grow their wealth.”
“With gold reaching successive all-time highs this year and central banks continuing to add bullion to their reserves, this portfolio provides a timely and accessible gateway to tap into the momentum while supporting portfolio hedging and tactical positioning in a dynamic investment landscape.”
The new strategy will be exclusively available on UOB AM’s Invest app.
