Investors set to place a greater focus on transparency and charges

Fund managers will need to place greater focus on blockchain to meet investor demands

A survey (1) of 100 institutional investors and wealth managers reveals that over the next two years, 33% think there will be a dramatic increase in the value of investments switching from expensive funds into those with more competitive fees. Half (51%) think there will be a slight increase.

The findings, which are from Global Palladium Fund (GPF), also reveal investors are placing a similar focus on the level and quality of reporting from fund managers. Some 42% anticipate a dramatic increase in investment outflows from funds with lower levels of reporting and transparency, and a further 32% believe there will be a slight increase.

The Global Palladium Fund has listed four metal Exchange Traded Commodities (ETCs) with the lowest charges in Europe and, in an industry first, use Blockchain technology to record bar information into Distributed Ledger Technology providing an extra layer of security and transparency,

Overall, over the next two years 94% of survey respondents said they expect institutional investors, wealth managers and family offices to demand greater levels of transparency and reporting from the fund managers they use, and 77% say the focus they place on trying to reduce fees will also increase.

Alexander Stoyanov, Chief Executive Officer of GPF said: “There is a growing number of funds available to investors, who at the same time are becoming more sophisticated in what they want from fund managers. Having very competitive fees and high levels of reporting and transparency are now just as important for fund managers to have as their stock selection and investment theme strategies. We offer the lowest charges of any ETPs listed in Europe that focus on the metals we invest in, and by being the first ETC provider to use Blockchain technology to record bar information into Distributed Ledger Technology, we are providing an extra layer of security and proof of ownership to the Issuer.”

Timothy Harvey, Chief Executive Officer and Founder of NTree, said: “In the near future, blockchain will become a key part of the proposition for all successful fund managers. The technology can dramatically enhance every aspect of a fund manager’s business from trading to reporting and meeting regulatory requirements.”

Global Palladium Fund (GPF) has four new metal ETCs (gold, silver, palladium and platinum) listed on the Deutsche Börse and London Stock Exchange. They 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’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.

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

Further information

gpf.global

(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.