Nornickel’s GPF makes world’s lowest-cost gold ETP even cheaper

Aug 31st, 2021 | By | Category: Commodities

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Nornickel has reduced the total expense ratio on its ultra-low-cost physical gold ETP, the GPF Physical Gold ETC (TGLD LN), from 0.145% to 0.12%.

Nornickel’s GPF makes world’s lowest-cost gold ETP even cheaper

The ETP has the lowest charges and total cost of ownership of any physically backed gold ETP globally.

The GPF Physical Gold ETC was launched in January through Nornickel’s Global Palladium Fund (GPF) and currently houses $15 million in assets. It has the lowest charges and total cost of ownership of any physically backed gold ETP globally.

The ETP’s closest competitors in Europe include the $13.0 billion iShares Physical Gold ETC (IGLN LN) and the $13.5bn Invesco Physical Gold ETC (SGLD LN), both of which are priced at 0.15%.

Gold has historically provided diversification, safe-haven qualities, and a strong hedge against inflation, properties that appear to be in considerable demand from investors. GPF highlights its recent research which shows that 75% of 150 European pension funds, collectively managing $213 billion in assets, are expecting to increase their allocation to gold over the next 12 months. This compares to just 5% of the same group that expect to underweight the precious metal.

Alexander Stoyanov, Chief Executive Officer of GPF, said: “We anticipate that pension funds along with wealth managers, family offices, and other professional investors will increase their allocation to gold and other metals as they look to continue to diversify their portfolios, hedge against rising inflation, and capitalize on the global economic recovery. Our new market-leading total expense ratio should make our gold-backed ETP instrumental in that endeavour.

GPF has launched six metal ETPs this year providing physically backed exposure to gold, silver, platinum, and palladium, as well as the world’s first ETFs providing physically backed exposure to copper and nickel. The ETPs maintain listings on London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana, and SIX Swiss Exchange.

Targeting family offices, wealth managers, institutional, and other similar professional investors, the ETPs have some of the lowest charges on the market with expense ratios ranging from 0.12% to 0.20% for the precious metal ETPs and up to 0.85% for their industrial metal counterparts.

All metals backing the ETPs are sourced from producers and metal suppliers which have confirmed their compliance with UN Sustainable Development Goals and other global initiatives in sustainable development and responsible mining.

To strengthen investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal. This is in addition to the traditional processes used by the custodian, thereby enhancing transparency and accountability. Recording bar and cathode information on the blockchain provides clear ownership and an immutable custody chain for investors using the ETPs.

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