Global Palladium Fund (GPF), established by MMC Norilsk Nickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, has issued the world’s only physically-backed carbon-neutral nickel Exchange Traded Commodity (ETC).
Alexander Stoyanov, Chief Executive Officer of GPF
- World’s first ETCs physically backed by carbon-neutral nickel issued in Europe (Vienna)
- Carbon-neutral nickel is delivered by Nornickel whose processes certified by EY and Sphera
- Most competitive TERs in the European marketplace and strong ESG credentials
- First ETC provider to use blockchain technology to provide investors with greater transparency and security
Targeting institutional investors, it has a Total Expense Ratio of 0.75%. The minimum investment is $100,000 and daily valuations are available on the Vienna Stock Exchange.
The carbon-neutral nickel has been accredited by international auditors EY and Sphera GmbH, confirming the methodology used to calculate the carbon footprint of the nickel.
The carbon neutrality of nickel has been made possible thanks to the Nornickel’s long-term strategy to cut greenhouse gas (CO2) emissions at all stages of the production chain, from underground ore mining to processing and refining, rather than through CO2 emission offsets. This includes the upgrade of the hydro power plant that feeds Nornickel’s production facilities in the Norilsk Industrial District and the upgrade and repair of power equipment, rollout of the automated control and metering system, reduction of heat losses in buildings and pipelines, and decommissioning of obsolete power units.
Commenting on the industry first, Alexander Stoyanov, Chief Executive Officer of GPF said: “It is yet another tangible benchmark achieved thanks to the commitment of Norilsk Nickel to emissions reduction so that we can bring the world’s first carbon-neutral nickel ETC to market. Investors can take advantage of low-cost access to nickel which has a fundamental role in the transition to clean energy in the knowledge it has been mined and produced responsibly.”
Targeting family offices, wealth managers, institutional and other similar professional investors, the launch of carbon neutral nickel ETC, joins the GPF’s portfolio of six physically-backed, low-cost metal GPF’s metal-backed ETCs, which also include gold, silver, platinum and palladium, are now listed on Xetra. The ETCs are also available on LSE, Xtra, SIX and Borsa Italiana. Flow Traders has been appointed as market maker and will provide liquidity in these funds on the different exchanges.
Erik-Jan Nieboer, Head of Commodities at Flow Traders said: “Being a leading liquidity provider in global ETPs in general, and metals ETCs – in particular, the addition of this new Carbon Neutral Nickel ETF ¬¬– ETC is a natural and complementary addition to our overall offering. We’re delighted to work together with GFP/NTree on this launch and look forward providing both on- and off-screen liquidity in this product.”
GPF is the first ETC issuer to use Blockchain technology to provide investors with enhanced transparency and security in their metal ETCs by recording bar serial number information into distributed ledger technology.
As outlined in the issuing prospectus, the copper and nickel backing the ETCs is sourced from MMC Norilsk Nickel and other producers and metal suppliers which have confirmed their compliance with the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining. GPF is the only major ETC issuer to make such a pledge.
To strengthen ETC investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal. This is in addition to the traditional processes used by the custodian, enhancing the transparency and accountability of the issuer. By recording bar and cathode information on the blockchain, it provides clear ownership and an immutable custody chain for investors using the ETCs.
GPF ETCs listings
|ETC||LSE Ticker (USD)||LSE Ticker (GBP)||Xetra Ticker (EUR)||Borsa Italiana (EUR)||SIX
|GPF Physical Copper ETC||TCOP||TCUS||OIIE||TCOP||TCOP||N/A|
|GPF Physical Nickel ETC||TNIK||TNIS||0IIF||TNIK||TNIK||N/A|
|GPF Physical Gold ETC||TGLD||TAUS||0IIA||TGLD||TGLD||N/A|
|GPF Physical Silver ETC||TSLV||TAGS||0IIB||TSLV||TSLV||N/A|
|GPF Physical Palladium ETC||TPAL||TPDS||0IID||TPAL||TPAL||N/A|
|GPF Physical Platinum ETC||TPLT||TPTS||0IIC||TPLT||TPLT||N/A|
|GPF Carbon Neutral Nickel ETC||NiC0|
Source : ETFWorld.co.uk