ETFS Physical Palladium
ASX Code: ETPMPD
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 product (ETP) 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
Exposure to the supply/demand dynamics of palladium.
Diversification away from traditional asset classes.
Simple exposure to the physical metal without the need to store yourself.
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 also available in the resources section below.
Each ETPMPD unit comes with an entitlement to an amount of physical bullion. This amount was 0.094275922 fine troy ounces as at 1 January 2021. The entitlement is reduced daily by a management fee of 0.49% per annum.
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.
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)||18 Jun 2021|
|Fund inception date||02 Jan 2009|
|Management Costs (% p.a.)||0.49|
|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|
Management & Administration
|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|