Gold offers a viable alternative to investment in currencies such as the dollar, euro and sterling, he said.
“In our view, gold is a more stable store of value, over a five-year view, than all paper currencies except the renminbi. Sterling is still our least favoured currency, even after significant falls in value,” he added.
UK funds ignore Myners Review
Sixty per cent of UK pension funds do not have an investment committee despite this being one of the key recommendations of the Myners Review, according to a recent survey by Russell Investments.
However, 86 per cent of respondents believed their current decision-making structure was effective, although 40 per cent were not confident in their ability to react quickly to new situations.
Almost half of the 200 UK schemes canvassed, said they spent more than 25 per cent of their trustee meeting time on investment matters. Russell contended that this was too much and suggested that trustees may not be delegating appropriately and allowing enough time to deal with other board issues.
