Investment Letter 16. October 2026

L&G Gold Mining UCITS ETF (EUR) – Gold provides stability

Initial situation
Geopolitics is keeping markets in flux. The conflict with Iran continues to escalate; meanwhile, both Russia and Ukraine are increasingly targeting industrial facilities, oil and gas infrastructure, as well as civilian sites deep within each other’s territories, and there is currently no end in sight to the Chinese real estate crisis. Furthermore, the US midterm elections are just around the corner. Despite these risks, capital markets remain remarkably calm. However, the aforementioned trouble spots—or unforeseen events—could at any time trigger significant market turbulence and heightened volatility. By purchasing the L&G Gold Mining UCITS ETF, we aim to make our portfolio more resilient and benefit from the anticipated rise in the price of gold.

Investment idea: Focus on Gold
Two-thirds of all available gold has already been mined since the 1950s. Gold mining output has remained stable year-on-year, ranging between 3,200 and 3,600 tons annually since 2014. Gold mining companies benefit from operational leverage. Given high yet stable fixed costs, a rally in the gold price usually translates directly into higher margins. These increased margins enable gold miners to boost shareholder returns and maintain their budgets for exploration and mining operations. The L&G Gold Mining UCITS ETF allows investors to participate in the performance of global gold mining companies. The fund focuses on established gold miners that are actively producing gold and have moved beyond the exploration phase. These established companies derive more than 50% of their revenue from gold production and are weighted in the portfolio according to their output.

Why is this Gold ETF attractive now:

• Investments in the growth potential of gold mining.
• As a so-called “risk-off” investment, this ETF could benefit from gold’s traditional strength as a lower-risk asset class.
• Leveraged exposure to gold: gold mining companies offer investors leverage on the price of gold.
• Many central banks, as well as institutional and private investors, aim to reduce their reliance on USD-denominated assets (particularly government bonds). Consequently, demand for physical gold—and thus the price of gold—is expected to continue rising.

Name: L&G Gold Mining UCITS ETF
ISIN:   LU2001393136
TER:   0.55%

Our Contacts:

Fabian Bürzle Head of Private Banking

Markus Alefelder Senior Investment Advisor