Schroders has relaunched its Schroder Alternative Solutions (AS) Gold & Metals fund and has marketed it as an alternative to exchange-traded funds (ETFs).

The fund will be renamed as the AS Gold and Precious Metals Fund and has been given a new investment approach and objective.

According to Schroders, the relaunched fund will give investors access to a gold-focused fund actively-managed by senior fund manager Paula Bujia.

The fund will invest in a range of investment instruments including futures, swaps, physically-backed ETFs and equities.

Bujia said, 'We believe that the current investment environment should be very supportive for further increases in the gold price.

'The fund’s strategy also adds value against gold-backed ETFs due to diversification and the potential extra returns from investing in equities and in other precious metals.'

The fund will be measured against the NYSE Gold Bugs Index, which comprises of 75 per cent weighting for the gold spot price and 25 per cent of gold equities.

The fund can hold up to 50 per cent in gold equities, up to 33 percent in other precious metals, such as silver and platinum, if the fund manager believes they will outperform gold, and up to 33 per cent in cash.