Research reveals institutional investors and wealth managers expect increased use of blockchain in asset management
New research (1) with institutional investors and wealth managers reveals that over the next three years, 50% believe there will be a ‘dramatic’ increase in the use of blockchain technology within the asset management sector, and a further 44% think there will be a slight increase.
The study is from Global Palladium Fund (GPF), which recently listed four metal Exchange Traded Commodities (ETCs) and is the first ETC provider 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.
When asked what they think is the main reason why blockchain will become increasingly important for asset managers, 51% of professional investors interviewed said it is part of the growing trend to provide more transparency around investments. Another 35% believe it is due to investors increasingly wanting more information on the investment vehicles they invest in, followed by 12% who said to meet growing regulatory demands. Some 2% believe the main reason for the growing use by asset managers is to reduce costs.
The findings reveal that 90% of professional investors believe that over the next five years, investment management firms will come under growing pressure from clients to use blockchain technology to provide greater security and transparency around their work.
Alexander Stoyanov, Chief Executive Officer of GPF said: “The asset management industry is becoming more competitive and challenging in terms of meeting client demands and regulatory requirements. We are the first ETC provider to make use of blockchain technology, using it to create an immutable record of metal ownership by the ETC. This is the first step in the use of blockchain to introduce greater transparency for investors in precious metals.”
Timothy Harvey, Chief Executive Officer and Founder of NTree, said: “Blockchain has many potential applications from trading through to reporting and regulatory requirements. In the long term, this will translate into greater efficiencies, transparency and cost savings.”
Global Palladium Fund’s (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.
GPF ETCs listed on London Stock Exchange and Xetra
|ETC||LSE Ticker||Xetra Ticker|
|GPF Physical Gold ETC||TGLD||0IIA|
|GPF Physical Silver ETC||TSLV||0IIB|
|GPF Physical Palladium ETC||TPAL||0IID|
|GPF Physical Platinum ETC||TPLT||0IIC|
Notes to editors:
(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.
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.
Global Palladium Fund
The Global Palladium Fund, set up by Nornickel in 2016, strives to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive industries to help make the world a better place. In an industry first, GPF is enabling industrial consumers and investors access to a range of metals in a variety of formats, including the ETCs. 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.
Nornickel is the world’s largest producer of palladium, high-grade nickel and a major producer of platinum, copper, precious metals and rare earths. For more information, visit: www.nornickel.com
NTree provides professional investors with an education and distribution service to access commodities and China through active and passive fund solutions including Exchange Traded Products. It will promote the GPF ETCs, providing investor education and insights into the role and importance of the metals as well as their place in portfolios (please visit www.ntree.co.uk for more details)
For Further information, please contact Clare Anderson
0044 7958 665883