ETFS Physical Platinum
ASX Code: ETPMPT
ETFS Physical Platinum (ASX Code: ETPMPT) offers low-cost access to physical platinum via the stock exchange and avoids the need for investors to personally store their own bullion.
ETPMPT offers investors a simple, cost-efficient and secure way to access platinum by providing a return equivalent to the Australian dollar price movement of platinum less a daily management fee.
ETPMPT is backed by physically allocated platinum 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.
ETPMPT 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 ETPMPT
Provides exposure to the supply and demand dynamics of platinum.
Diversification away from traditional asset classes.
Simple exposure to the physical metal without the need to store yourself.
The physical platinum for ETPMPT 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 platinum bar in the vault is itemised in a bar-list which also is available in the resources section below.
Each unit in ETPMPT 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 platinum, 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.
Platinum tends to have a low correlation to other traditional asset classes and therefore can be used to enhance a portfolio’s risk/return characteristics through diversification. Platinum can be viewed as an alternative asset.
Platinum can offer a growth exposure in relation to industrial demand in automotive, technology and medical industries.
|Date (NAV)||10 May 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||ETPMPT 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 Platinum Price PM|