In this paper, we examined the results of adding an allocation to the SPDR Gold Shares comprising 2%, 5%, and 10% of a multi-asset portfolio under a hypothetical scenario. The hypothetical portfolio is based on the concept of the Global Multi-Asset Market Portfolio developed by State Street Global Advisors Investment Solutions Group and incorporates additional assumptions for the purpose of our case study.
From an asset allocation perspective, hypothetical portfolios with the SPDR Gold Shares allocation had better risk-adjusted returns.
Hypothetical results have inherent limitations because they do not reflect actual trading by State Street during the period described and may not reflect the impact that material economic and market factors might have had on State Street’s decision-making if it was actually managing clients’ money pursuant to the strategies. There is no guarantee that any of the investment strategies will be successful and investors should be aware that they can lose money investing assets in accordance with the strategies.
The information provided does not constitute investment advice and it should not be relied on as such.The value of SPDR® Gold Shares (the "Shares") may fall as well as rise. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. Past performance figures of the SPDR® Gold Trust (the "Trust") or of the gold market are not necessarily indicative of the future performance of the Trust. The Shares are expected to reflect the price of gold, therefore the price of the Shares will be as unpredictable as the price of gold has historically been.
The prospectus in respect of the Singapore offer of the shares in the Trust is available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSgA") (Co. Reg. No: 200002719D). Investors should read the prospectus of the Trust before deciding whether to purchase Shares. Shares in the Trust are not obligations of, deposits in, or guaranteed by, World Gold Trust Services, LLC, SSgA or any of their affiliates. You may wish to seek advice from a financial adviser before making a commitment to purchase Shares. In the event that you choose not to seek advice from a financial adviser, you should consider whether the Trust is suitable for you. Investors have no right to request the Sponsor to redeem their Shares while the Shares are listed. It is intended that holders of Shares may only deal in their Shares through trading on the SGX-ST. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.
The views expressed in this material are the views of SPDR Gold Strategy Team through the period stated in the report and are subject to change based on market and other conditions.
All forms of investments carry risks, including the risk of losing all of the
invested amount. Such activities may not be suitable for everyone.
Expiry date: 30/04/2022