AngloGold

Our balanced and equity funds have held an underweight position in the resources sector for some time. A meaningful part of this position is in the gold shares, which have benefited from a rapid rise in the metal price over the past 12 months. In these uncertain times, there is a wide range of possible outcomes, making it easy to construct compelling bear and bull cases. Whilst the current gold price trades at record highs*, we could see meaningfully higher gold allocations across global portfolios in the years ahead. Our holdings in gold shares recognise the possibility of such an outcome. However, our base case remains a long-term decline in the gold price. Further considerations include the fact that gold miners have historically been poor at returning capital to shareholders, and that costs have compounded at high levels during periods when the gold price was strong. We remain concerned about the capital losses shareholders in gold shares would incur if some of the sector's froth dissipates. Hence, we remain cautious.

*At the time of writing in October 2025

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