GPF lists world’s only physically backed copper and nickel ETCS on LSE: metals critical to enabling the Clean Energy Transition
London, June 17, 2021 – The Global Palladium Fund (GPF), established by MMC Norilsk Nickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, has today launched the world’s only physically-backed copper and nickel Exchange Traded Commodities (ETCs) for trading on the London Stock Exchange.
Alexander Stoyanov, Chief Executive Officer of GPF said: “GPF is committed to democratising investment in precious and base metals. The new physical copper and nickel ETCs benefit from our low pricing, enhanced transparency and security and sustainable supply source.”
The ETCs are attractively priced with annual total expense ratios (TERs) of 0.85% and 0.75% respectively, making them the most cost-effective way for European-based investors to achieve exposure to the metals through an exchange traded product, as they seek to take advantage of the energy transition megatrend. Copper and nickel are two of the minerals that will feature prominently in the transition to clean energy as highlighted by the International Energy Agency in their recent report, The Role of Critical Minerals in Clean Energy Transitions.
The new ETCs are on London Stock Exchange, with a listing on Xetra to follow next week. The listings follow the launch of GPF’s physically-backed, low-cost gold, silver, platinum and palladium ETCs earlier this year. All six physically-backed metal Exchange Traded Commodities (ETCs) list today on Borsa Italiana – the largest listing of its kind in over a decade.
GPF is the first ETC issuer to use Blockchain technology to provide investors with enhanced transparency and security in their metal ETCs by recording bar information into distributed ledger technology. Earlier, Nornickel’s president, Vladimir Potanin, has pledged to explore technological innovations in financial sector, such as tokenization, to create added value, democratize access and benefit the society. Interros, Russia’s largest investment company founded by Mr. Potanin over 30 years ago, has joined the consortium of investors backing Atomyze – an international tokenization platform.
The new ETCs enable investors to take exposure to metals that feature prominently in the transition to the net zero economy. Targeting family offices, wealth managers, institutional and other similar professional investors, the new physically-backed copper and nickel ETCs will track the spot price of the metals. The metal backing GPF ETCs is stored in secure warehouses in Rotterdam.
The price of both metals rose strongly in 2020, copper by 25.8% (1) as it benefitted from the growth of Electric Vehicle demand, as well as the roll out of renewable energy systems for power generation. Nickel prices saw growth of 22.2% (2) driven by its use in battery technology for Electric Vehicles: depending on the model, the nickel content of batteries in battery electric vehicles (BEVs) ranges from 30 – 110 kgs.
As outlined in the issuing prospectus, the copper and nickel backing the ETCs is sourced from producers and metal suppliers which have confirmed their compliance with the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining. GPF is the only major ETC issuer to make such a pledge.
To strengthen ETC investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal. This is in addition to the traditional processes used by the custodian, enhancing the transparency and accountability of the issuer. By recording bar and cathode information on the blockchain, it provides clear ownership and an immutable custody chain for investors using the ETCs.
Timothy Harvey, Chief Executive Officer and Founder of NTree, which promotes and markets the securities, said: “The new copper and nickel ETCs are an exciting development for professional investors, enabling them low-cost access to physical metals for the first time. Both metals not only play an important role in the growth of green technologies and energy, but can also help to improved risk-adjusted returns in a diversified investment portfolio.”
Notes to editors
- Copper | 1988-2021 Data | 2022-2023 Forecast | Price | Quote | Chart | Historical (tradingeconomics.com)
- Nickel | 1993-2021 Data | 2022-2023 Forecast | Price | Quote | Chart | Historical (tradingeconomics.com)
Good Delivery Rules’ set by LBMA, LPPM, and LME for precious and base metals are universally acknowledged as the de facto international standard for due to the strict criteria that apply to responsible mining operations and protection of human rights.
LBMA established the Responsible Gold Guidance for Good Delivery Refiners that follows the five-step framework due diligence of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals.
GPF ETCs listings
|ETC||LSE Ticker (USD)||LSE Ticker (GBP)||Xetra Ticker (EUR)||Borsa Italiana (EUR)||SIX (CHF)|
|GPF Physical Copper ETC||TCOP||TCUS||TBC||TCOP||TBC|
|GPF Physical Nickel ETC||TNIK||TNIS||TBC||TNIK||TBC|
|GPF Physical Gold ETC||TGLD||TAUS||0IIA||TGLD||TBC|
|GPF Physical Silver ETC||TSLV||TAGS||0IIB||TSLV||TBC|
|GPF Physical Palladium ETC||TPAL||TPDS||0IID||TPAL||TBC|
|GPF Physical Platinum ETC||TPLT||TPTS||0IIC||TPLT||TBC|
NTree provides sophisticated investors with an education, advisory, and distribution service to access global commodities through a range of active and passive funds. It will promote the GPF ETCs, providing investors with relevant and current information on metals so that they can make informed investment decisions.
Global Palladium Fund (GPF)
The Global Palladium Fund was created to make the world’s precious, base and rare-earth metals accessible to everyone and to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive. We care about our planet deeply and stand ready to ensure that its resources are spent wisely where they are needed most.
GPF is proud to be supported by Nornickel. Its products are in high demand across the globe and it has operations in the Russian Far North, Finland and South Africa.
 International Energy Agency, The Role of Critical Minerals in Clean Energy Transitions, May 2021