Euro Pacific Asset Management has launched the EuroPac Hard Asset Fund, a new investment product designed to mitigate against inflation and the dollar devaluation.
The fund will invest in both hard assets and currencies that the firm believes will appreciate in value against the dollar. In addition, the fund seeks income from dividends and interest. Besides investing in gold and silver, the fund will invest in precious metal mining companies and companies involved in energy, agriculture and the production of industrial metals.
“The last few years have seen an unprecedented pace of monetary expansion from the United States and other countries looking to keep pace in a game of competitive currency debasement,” said Peter Schiff, investment committee chairman at Euro Pacific Asset Management. “As a result, it is inevitable that some investors seek to stock up on tangible assets that tend to hold value in periods of high inflation.”
Jim Nelson, who is co-managing the fund along with Schiff, added: “A casual observer may assume that our new fund will behave like a precious metal fund, which many investors already seek for inflation protection. But we have designed it with many characteristics that may distinguish its performance from that category of funds. In particular, the fund’s asset allocation will seek to maximize the portfolio’s correlation and sensitivity to the inflation rate, while also maximizing risk-adjusted return and generating as little volatility as possible.”