Global Palladium Fund GPF

Global Palladium Fund reduces the cost of its gold ETC to take advantage of investor interest

 Global Palladium Fund reduces the cost of its gold ETC to take advantage of investor interest. Gold ETC fee cut

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Alexander Stoyanov, Chief Executive Officer of GPF

– GPF physically backed gold ETC has lowest TCO on the market

– Research highlights European pension funds expect to increase their allocation to gold

The Global Palladium Fund (GPF), which offers the world’s largest range of physically backed metal exchange traded commodities (ETCs), has today reduced the total expense ratio (TER) of its gold ETC from 0.145% to 0.12%.  This means it has the lowest charges and Total Cost of Ownership of any physically backed gold ETC in the world.

Analysis of the 12 other physically backed gold ETCs listed in Europe show that annual fees range from 0.4% to 0.15%, making them between £28,000 and £3,000 more expensive on a £10m investment compared to GPF gold on an annual basis. 

Gold continues to provide diversification and a good hedge against rising inflation for investors.  This is highlighted by research (1) with 150 European pension funds with a combined AUM of $213 billion, which reveals the majority are expecting to increase their allocation to gold.

The study, which was carried out by GPF shows that 75% of pension funds are expecting to increase their allocation to gold over the next 12 months, compared to just 5% who expect to underweight the metal.

For those pension funds expecting to increase their exposure to gold, 75% said that the most important reason was that it has become easier and less expensive to invest in thanks to more gold ETPs on the market, and 73% said that it offers increasingly attractive diversification benefits for investors.  This was followed by 71% who said that gold is a good hedge as the US Dollar falls in value and as an inflation hedge (67%).  Just 13% said that it was due to the rising price of gold due to improving fundamentals.

Alexander Stoyanov, Chief Executive Officer of GPF said: “We anticipate that pension funds along with wealth managers, family offices and other professional investors will increase their allocation to gold and other metals as they look to continue to diversify their portfolios, hedge against rising inflation, and capitalise on the global economic recovery.  Our new market-leading TER should make our gold-backed ETCs instrumental in that endeavour.”

GPF has launched six physically-backed metal ETCs this year – copper, nickel, silver, gold, platinum and palladium, with listings on LSE, Deutsche Börse, Borsa Italiana and SIX.  GPF is the only provider of physical copper and nickel ETCs in the world.  GPF is a subsidiary of MMC Norilsk Nickel, one of the world’s largest mining conglomerates.

Targeting family offices, wealth managers, institutional and other similar professional investors, the ETCs track the spot price of the metals and have some of the lowest charges on the market, with TERs ranging from 0.12% to 0.20% for its precious metal ETCs, and up to 0.85% for its industrial metal ETCs.

The metals backing the ETCs are sourced from 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.

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