Nornickel's Global Palladium Fund Reduces the Cost of Its Gold ETCs to Take Advantage of Investor Interest

GPF physically backed gold ETC has the lowest TCO on the market, while 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.

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, which is headed by Vladimir Potanin.

Analysis of the 12 other physically backed gold ETCs listed in Europe shows 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. 

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.

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.

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.

Global Palladium Fund

The Global Palladium Fund was created to make the world's precious, base and rare-earth metals accessible to everyone and to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive. GPF cares about our planet deeply and stands ready to ensure that its resources are spent wisely where they are needed most.

For more information, visit: www.gpf.global 

Media contact: Maria Dzenisa pr@gpf.global

Source: Global Palladium Fund

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Categories: Commodities

Tags: Global Palladium Fund, Nornickel, six physically-backed metal ETCs, Sustainable Development Goals, Vladimir Potanin