OCBC’s Lion Global Investors launches Singapore’s first physical gold fund
It seeks to track the performance of London Bullion Market Association Gold Price AM
[SINGAPORE] OCBC’s Lion Global Investors announced on Tuesday (Nov 25) the launch of the first physical gold fund that is insured and securely vaulted in Singapore.
The inception date of the Lion Global Singapore Physical Gold Fund is Dec 1, with a launch price of S$1 or US$1 per unit of a class denominated in Singapore dollars or US dollars.
A minimum holding of 100 units has been set for investors, and a minimum initial investment of S$1,000 or US$1,000, depending on the class type of the investment.
It seeks to track the performance of London Bullion Market Association (LBMA) Gold Price AM as closely as possible.
It will invest in LBMA Good Delivery gold and is fully safekept in Singapore. This refers to bars produced by refineries which meet LBMA’s quality and purity standards.
The gold bars are uniquely identifiable and segregated under the fund’s assets, with no gold derivative exposure as well, Lion Global Investors said.
Fund distribution to retail investors is by OCBC, MariBank Singapore, Great Eastern and Singlife Group.
The physical gold fund is available for subscription via the partners from these periods:
Standard Chartered Bank Singapore has also been appointed as the fund’s custodian.
Teo Joo Wah, chief executive of Lion Global Investors, said that the launch addresses “growing demand” for alternative assets in diversified portfolios, especially in volatile markets where gold still serves as a trusted store of value.
Gold has a history of generating positive returns since 2000, doing so across nine of 10 major crises involving interest rate volatility, speculative bubbles, and financial and sovereign debt crises.
It has appreciated against both developed market and Asian currencies recently, while historically serving as a hedge against weakness of fiat currencies.
The launch of the first physical gold fund also helps to elevate Singapore’s standing as a leading gold hub.
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