The Global Palladium Fund (GPF) has cut the cost of owning gold exchange-traded commodities (ETCs) on its platform.
The total expense ratio of its gold ETC has been cut to 0.12% from 0.145%, which the company believes are the lowest charges and total cost of ownership of any physically-backed gold ETC in the world.
Annual fees from competitors range from 0.15% to 0.4%, GPF said.
Gold, described in some circles whimsically as “cryptocurrency for the older generation”, continues to provide diversification and a good hedge against rising inflation for investors, GPF asserted.
A survey conducted across the UK, Italy and Germany by Pureprofile of 150 pension funds with combined assets under management of US$213bn revealed that three-quarters of them are expecting to increase their allocation to gold over the next 12 months, compared to just 5% expecting to trim their holdings.
“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 capitalise on the global economic recovery,” said Alexander Stoyanov, the chief executive of GPF.
GPF has launched six physically-backed metal ETCs this year – copper, nickel, silver, gold, platinum and palladium, with listings on LSE, Deutsche Börse (ETR:DB1), Borsa Italiana and SIX.
Targeting family offices, wealth managers, institutional and other similar professional investors, the ETCs track the spot price of the metals and have some of the lowest charges on the market, with total expense ratios ranging from 0.12% to 0.20% for its precious metal ETCs, and up to 0.85% for its industrial metal ETCs, GPF said in a press release.
The GPF range of ETCs is distributed by NTree International.