Gold funds plunge as inflation-linked gilts top performance tables in August

BoE action fuels demand for gilts

Gold funds began giving up gains made earlier in the year, with the five worst-performing funds in August all investing in the precious metal.

Research from Wealth Club found the £116m Investec Global Gold fund was the worst performing fund for the month, falling by 13.5%, as the gold price retreated from a high of $1,360/oz to $1,309/oz last month. The other worst-performing funds (see table) included gold offerings from Ruffer and BlackRock. Meanwhile, index-linked gilts topped the tables, both from a fund and sector perspective. BlackRock's Institutional Bond Index Linked fund topped the fund performance table with a return of 12.5% in August, followed by Baillie Gifford's Active Index Linked Gilt Plus fund and the Ins...