The Fund fell -8.4% during the month (I2 EUR), compared with the EMIX Global Mining Gold Index which fell -4.5% (in Euro terms).
Despite a challenging start to the year for equity markets, we are seeing positive signs for the gold sector so far in February. We expect the headwinds for the gold sector to abate in the months ahead, particularly as we approach the start of the US rate hike cycle and as clarity grows over the limited scope for higher real rates.
Overall, we see signs that the gold sector is at or near bottom and as such the Fund is positioned for the recovery of the gold sector.
You can read more about our views on the interplay between gold, inflation and interest rates here.