Specialist asset manager Castlestone Management has launched the Aliquot Gold & Precious Metals Equities fund, which will invest in a mixed bag of investments.

The fund will be managed by Castlestone's investment committee, led by chief executive Angus Murray, and will invest in up to eight precious metal equity funds and is currently invested in three funds.

It will aim to limit single manager risk and will be diversified by region, market cap and investment style.

Murray said, 'Castlestone sees the potential for precious metals to be one of the stronger asset classes over the next ten years as the risk of inflation and geopolitical tensions persist.

'An equity fund like this should accompany, rather than replace, an allocation to physical precious metals to maximize the possible areas of return resulting from this growth.'

Murray said he believed the strategy would work as more advisers wanted greater exposure to the sector without the dependence on a singly manager.

He added,'This approach stresses diversification and couples Castlestone’s expertise in precious metals with the small- and mid-cap bias of specific managers.'

The fund will also be able to invest in physical gold bullion to hedge against macroeconomic and geopolitical events and able to invest in other investment vehicles.

The British Virgin Islands-domiciled fund has a minimum investment of £10,000 (or $10,000/€10,000).