Global X Physical Precious Metal Basket

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100232-2023-03-16-02:26.pdf
FUND MANAGER Global X Management (Aus)
INVESTMENT STYLE The Fund aims to replication the spot price of its underlying metal(s).
INVESTMENT PROFILE The Fund provides a return equivalent to the movements in the spot price of its underlying metal(s) less the applicable management fee.
BENCHMARK Precious metals, LBMA Prices
FUND SIZE Precious metals, LBMA Prices
FEES 0.44% p.a. of the NAV of the Fund



Benefits of investing in the Global X Physical Precious Metal Basket ETF


  • Diversification: Precious metals are often uncorrelated with other asset classes and can be used to improve portfolio risk/return characteristics and to hedge against event risk.
  • Growing demand: Precious metals continue to see demand across a range of industrial applications.
  • Secure: ETPMPM holds fully allocated bullion with HSBC Bank plc in London. The vault is audited twice annually to ensure that the bullion meets the required specifications.
  • Redeemable: Holders who maintain an unallocated bullion account are able to redeem ETPMPM Securities for metal directly with the Issuer.
  • Liquid: ETPMPM invests only in physical bullion and is therefore highly liquid.





Key Features

Fund overview / Investment Objective

Global X Physical PM Basket (ETPMPM) is designed to offer investors a simple, cost-efficient and secure way to access the precious metal market by providing a return equivalent to the movements in the spot prices of four precious metals less the applicable management fee.

ETPMPM is backed by physical allocated precious metal held by HSBC Bank plc (the custodian). Only metal conforming with following rules can be accepted by the custodian: The London Bullion Market Association's (LBMA) rules for Good Delivery for Gold and Silver; The London Platinum and Palladium Association's (LPPA) rules for Good Delivery for Platinum and Palladium. Each physical bar is segregated, individually identified and allocated.

ETPMPM 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 PM Basket Security has an effective entitlement to gold, silver, platinum and palladium that changes daily to reflect the accrual of the management fee.

Authorised participants create and redeem Global X Physical PM Basket Securities by delivering or receiving metal that conforms to LBMA and LPPM standards.

Global X Physical PM Basket Securities are traded on exchange with a price that is based on the spot price of the each metal 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:

  • A Metal Share issued by the Company; and
  • a beneficial interest in a Separate Trust that owns the relevant amount of Bullion (being the Metal Entitlement).

Metal Entitlement

There will be a separate Metal Entitlement for each class of Metal Security, which as at 28 February 2018 was:

0.038558091 fine troy oz gold; 1.147178785 troy oz silver; 0.009559844 troy oz platinum; and 0.019119684 troy oz palladium.

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).