Low cost access to physical palladium
ETFS Physical Palladium (ASX code: ETPMPD) offers low-cost access to physical palladium via the stock exchange and avoids the need for investors to personally store their own bullion.
ETPMPD offers investors a simple, cost-efficient and secure way to access palladium by providing a return equivalent to the Australian dollar price movement of palladium less a daily management fee.
ETPMPD is backed by physically allocated palladium held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Platinum and Palladium Association’s (LPPM) rules for Good Delivery is accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.
ETPMPD is an exchange traded commodity ("ETC") that can be created and redeemed on demand (by Authorised Participants). It trades on the stock exchange just like a share and is settled and held in ordinary brokerage accounts.
Why Consider ETPMPD?
Low-cost access to physical palladium
Provides exposure to the supply and demand dynamics for palladium in areas such as the automotive industry
Enables diversification away from traditional asset classes
ETPMPD units are redeemable directly with the issuer for the underlying bullion
Liquid and transparent
Where is the metal stored?
The physical palladium for ETPMPD is held in the vault(s) of JPMorgan Chase Bank, N.A. in London. The vault is audited twice yearly by the auditor Inspectorate. All audit reports are made available in the Resources section below. Each palladium bar in the vault is itemised in a bar-list which is available at the top of the web page.
How is the management fee paid?
Each ETPMPD unit comes with an entitlement to an amount of physical bullion. The entitlement is reduced daily by a management fee of 0.49% per annum. The exact metal entitlement per unit is published on the ETF Securities website daily.
How do I redeem units for the physical metal?
To redeem for physical palladium, an investor needs to:
Complete and send a redemption form.
Open an unallocated bullion account with an authorised bullion dealer.
Pay a redemption fee of $1,000 for each redemption. Depending on the quantity of the order, investors may find that selling units in the secondary market is a more cost-efficient option, especially for small quantities.
How can I use ETPMPD in a portfolio?
Palladium tends to have a low correlation to other traditional assets and can therefore be used to enhance a portfolio’s overall risk/return characteristics through diversification. Palladium can be viewed as an alternative asset exposure.
Palladium can offer a growth exposure in relation to industrial demand in the area of automotive manufacturing.
|Date (NAV)||21 Sep 2020|
|Fund inception date||19 Dec 2008|
|Management Costs (% p.a.)||0.49|
|Maximum cost recoveries (% p.a.)||0.00|
|Legal Form||Redeemable preference share with an entitlement to metal|
|Vault Location||London, UK|
|Bloomberg Code||ETPMPD AU Equity|
|Trading hours||10:00AM – 4:00PM|
|Issuer||ETFS Metal Securities Australia Limited|
|Custodian||JPMorgan Chase Bank, N.A.|
|Registrar||Computershare Investor Services Pty Limited|
|Trustee||Gold Bullion Nominees|
|Benchmark||LBMA Palladium Price PM|