Global X Physical Palladium
About this Fund
|Global X Management (Aus)
|EXCHANGE TRADED FUNDS
|The Fund aims to replication the spot price of its underlying metal(s).
|The Fund provides a return equivalent to the movements in the spot price of its underlying metal(s) less the applicable management fee.
|LBMA Palladium PM PR USD
|LBMA Palladium PM PR USD
|NO. OF HOLDINGS
|0.49% p.a. of the NAV of the Fund
Benefits of investing in the Global X Physical Palladium
Fund overview / Investment Objective
Global X Physical Palladium (ETPMPD) is designed to offer investors a simple, cost-efficient and secure way to access palladium by providing a return equivalent to the movements in the palladium spot price less the applicable management fee.
ETPMPD is backed by physical allocated palladium held by HSBC Bank plc (the custodian). Only metal that conforms with the London Platinum and Palladium Association's (LPPM) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated.
ETPMPD is an Exchange Traded Commodity ("ETC") that can be created and redeemed on demand (by market makers). It trades on the ASX just like an equity, is settled and held in ordinary brokerage accounts, and its pricing and tracking operates similarly to an Exchange Traded Fund.No new securities can be issued until the bullion is delivered to the Custodian's vault. There is no credit risk within this product.
About the pricing
Each individual Global X Physical Palladium Security has an effective entitlement to palladium, and that entitlement changes daily to reflect the accrual of the management fee.
Authorised participants create and redeem Global X Physical Palladium Securities by delivering or receiving palladium that conforms to LPPM standards. Global X Physical Palladium Securities are traded on exchange with a price that is based on the spot price of palladium multiplied by the applicable metal entitlement in Australian dollars.
How we invest your money
Components of a Metal Security
A Metal Security is comprised of a Metal Share of nominal value plus a Beneficial Interest in the relevant amount of Bullion (the Metal Entitlement), which Bullion is held in a Separate Trust for each Holder.
A Metal Share is a redeemable preference share with a nominal value of 1/1000th of 1 cent which carries with it a right to the Metal Entitlement applicable to that class of share. Although a Metal Share in itself has no economic value, it exists in order to provide a class of "share which is tradeable on the ASX.
The economic value of each Metal Security lies in the Metal Entitlement which is carried around with each Metal Share. Whenever there is a transfer in ownership of a Metal Share, there is a corresponding transfer in the ownership of the Metal Entitlement applicable to that Metal Share.
Pursuant to the Trust Deed, a Separate Trust is established for each Holder of a Metal Share and the Metal Entitlement is held by the Trustee on trust for each such Holder. Each Holder will therefore hold:
There will be a separate Metal Entitlement for each class of Metal Security, which as at 28 February 2018 was:
0.095598236 troy oz.
The Metal Entitlement for each class of Metal Security will be calculated daily by the Company, to nine places of decimals with 0.0000000005 troy ounces (or fine troy ounces in the case of gold) rounded upwards, and will be published on the parent company's website https://www.globalxetfs.com.au/ and will also be available through the ASX electronic news announcement system.
The Management Fee may be varied by the Company at any time, but in the case of an increase, such variation may only be made after giving 30 days' prior notice to all Holders (to be released through the CAP).