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New research reveals institutional investors and wealth managers plan to switch to metal investment funds with stronger ESG credentials

New research [1] with institutional investors and wealth managers reveals the growing demand for metal investment funds with a strong ESG focus, ensuring the metals are sustainably and ethically sourced.

The study, from Global Palladium Fund (GPF), which has recently listed four physically-backed metal Exchange Traded Commodities (ETCs) with the lowest charges in Europe, shows that over the next 24 months, the majority of investors (89%) expect there to be an increased focus on how metals are sourced and mined in a responsible and sustainable way, with 27% expecting the focus to increase dramatically.

Global Palladium Fund’s new ETCs have a strong focus on ESG. LBMA-approved metal will be sourced from producers and suppliers who support the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining.

When asked how they see flows between different metal investment vehicles changing over the next 24 months, 82% of professional investors interviewed said they expect to see an increase in flows into funds that focus on ensuring the metals are sourced in a responsible and sustainable way from funds that have weaker credentials in this area. Just under one third (29%) expect this trend to increase dramatically over the next two years.

Alexander Stoyanov, Chief Executive Officer of GPF said: “Our research highlights the growing importance of ESG credentials amongst institutional investors when choosing which metal funds to invest in, and also as a driver for proactively switching from current investment vehicles if their commitment to sustainable sourcing falls short.”

NTree International Ltd, a specialist in marketing, distribution and investor engagement, is leading the distribution and rollout of Global Palladium Fund’s new metal ETCss. NTree has set up a dedicated brand, Metal.Digital as an education resource for professional investors with a focus on metals.

Timothy Harvey, Chief Executive Officer and Founder of NTree, said: “Our research shows the ever-increasing importance of ESG in investors’ decision-making. That’s why we have launched new metal ETCs that have the lowest charges in the marketplace and a market-leading commitment to ensuring the metals are mined ethically.”

Global Palladium Fund’s (GPF) new ETCs are listed on the Deutsche Börse and London Stock Exchange and have the lowest charges with total expense ratios (TER) ranging from 0.145% to 0.20%. Targeting Family Offices, wealth managers, institutional and other professional investors, the new physically-backed gold, silver, platinum and palladium ETCs will track the spot price of the respective metals they cover.

GPF is also the first to use Blockchain technology to record bar information into Distributed Ledger Technology, thereby providing an extra layer of security and proof of ownership to the Issuer. The use of Blockchain is in addition to the traditional recording processes used by the custodian.

Next Finance May 2021

Footnotes

[1] Global Palladium Fund commissioned the market research company Pureprofile to interview 100 professional investors – 50 institutional investors and 50 wealth managers – across the UK and Germany. The survey was conducted online in January 2021.

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