Low cost access to physical precious metals
ETFS Physical PM Basket (ASX code: ETPMPM) offers low-cost access to physical gold, silver, platinum and palladium via the stock exchange and avoids the need for investors to personally store their own bullion.
ETPMPM offers investors a simple, cost-efficient and secure way to access precious metals in the form of gold, silver, platinum and palladium by providing a return equivalent to the Australian dollar price movement of the metals basket less a daily management fee.
ETPMPM is backed by physical allocated gold, silver, platinum and palladium held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association’s (LBMA) rules for gold and silver Good Delivery and 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.
ETPMPM 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 ETPMPM?
• Low-cost access to physical gold, silver, platinum and palladium
• Enables diversification away from traditional asset classes
• ETPMPM units are redeemable directly with the issuer for the underlying bullion
• Liquid and transparent
Where is the metal stored?
The physical metals for ETPMPM are 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 precious metal 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 unit in ETPMPM comes with an entitlement to an amount of physical bullion. The entitlement to each metal is reduced daily by a management fee; 0.40% per annum for gold and 0.49% per annum for silver, platinum and palladium. The exact entitlement for each metal per unit is published on the ETF Securities website daily.
How do I redeem units for the physical metal?
To redeem for the physical precious metals, 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 are the metals weighted?
The current weights for each metal in ETPMPT are shown here and are updated on a daily basis. ETPMPM does not rebalance, but the weight on each metal in Australian dollar terms will change as the prices of each of the metals moves.
How can I use ETPMPM in a portfolio?
Precious and industrial metals tend to have a low correlation to other traditional assets and therefore can be used to enhance a portfolio’s risk/return characteristics through diversification. alternative asset exposure. Precious and industrial metals can be viewed as alternative assets.
Rather than rely on the performance of one metal, ETPMPM is diversified across gold, silver, platinum and palladium. Each metal varies in having defensive and/or growth qualities.
|Date (NAV)||21 Sep 2020|
|Fund inception date||30 Jan 2009|
|Management Costs (% p.a.)||0.44|
|Maximum cost recoveries (% p.a.)||0.00|
|Legal Form||Redeemable preference share with an entitlement to metal|
|Vault Location||London, UK|
|Bloomberg Code||ETPMPM 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||Precious metals, LBMA Prices|