State Street Global Advisors Low-Cost Gold Fund in Australia

State Street Global Advisors has introduced the State Street Gold Fund, a new unlisted managed fund tailored for the Australian market. This initiative aims to provide investors with exposure to the performance of the spot gold price (LBMA Gold Price PM in Australian dollars).

The fund achieves this objective by investing in securities backed by physical gold bullion stored securely in vaults located in key global financial centers, including London, New York, and Zurich. Notably, the management costs for this fund are at a competitive 0.14% per annum, making it the lowest-cost gold fund domiciled in Australia.

State Street Global Advisors Low-Cost Gold Fund in Australia

The launch of the State Street Gold Fund responds directly to increasing investor demand for gold exposure in diversified portfolios. ANZ Private Bank, managing over AU$9 billion on behalf of its clients, will seed the fund. This move forms part of ANZ Private Bank’s strategic asset allocation adjustment, which includes an inaugural allocation to gold.

Also, Robin Tsui, State Street Global Advisors Asia Pacific Gold Strategist, highlighted gold’s potential as a hedge against inflation amidst a backdrop of evolving global macroeconomic dynamics. “The price of gold is influenced by a complex interplay of factors, including central bank policies, interest rates, and shifts in emerging market demand and mining production,” Tsui noted.

Lakshman Anantakrishnan, Chief Investment Officer at ANZ Private Bank, underscored the strategic rationale behind incorporating gold into multi-asset portfolios. “Gold historically exhibits low or negative correlation to most other asset classes, offering diversification benefits during periods of market uncertainty,” Anantakrishnan explained. “This asset class can serve a similar role as a safe haven asset, particularly amidst rising real yields and a strong dollar.”

The State Street Gold Fund is accessible to a broad spectrum of investors, including institutional clients, advised investors, as well as intermediary investors such as financial advisers and platforms.

Investors looking to capitalize on the benefits of gold within their portfolios now have an additional avenue through the State Street Gold Fund, designed to deliver cost-effective exposure to this enduringly sought-after asset class.

Lastly, take a look at the Best Forex Brokers.