Swiss private banking and investment group Julius Baer has signed a deal with Novia for the UK-based wrap provider to launch an exclusive protected version of Julius Baer’s Physical Gold fund – an ETF investing primarily in standard 400-ounce bars.

Julius Baer launched the original version of its Physical Gold fund in October of last year and a subsequent structured version in August. This new protected version offers 95 per cent capital protection at maturity and 100 per cent upside participation, Julius Baer said in a statement. The fund is also currency-hedged against foreign exchange risk in relation to the US dollar.

“The price of gold has surged through the $1000 mark and Julius Baer believes it will continue to rise in 2010. Concerns over the devaluation of major currencies, especially the US dollar, and inflation, are encouraging investors to seek safe haven investments. Gold is high on their agenda,” said Stephen Moore, executive director, head of sales UK at Julius Baer International.

The product will be exclusively available on the Novia platform until 19 November 2009; minimum investment is £10,000 ($9,717) and investments will be accepted in increments of £10,000 net of charges.

Providing capital protection for the product is being provided by Japanese bank Nomura.