Low cost access to physical platinum
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 physical 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 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 ETPMPT?
Low-cost access to physical platinum
Enables diversification away from traditional asset classes
Provides exposure to the supply and demand dynamics for platinum in areas such as the automotive, technology and medical industries
ETPMPT units are redeemable directly with the issuer for the underlying bullion
Liquid and transparent
Where is the metal stored?
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 is available at the top of the web page.
How is the management fee paid?
Each unit in ETPMPT 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 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.
How can I use ETPMPT in a portfolio?
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)||21 Sep 2020|
|Fund inception date||30 Jan 2009|
|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||ETPMPT 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 Platinum Price PM|