DEMOCRATISING ACCESS TO PHYSICAL GOLD
In the last 25 years, global equity markets have experienced 10 major crises, from financial crises and interest rate volatility to wars and speculative bubbles. In nine of these crises, gold generated a positive return, cementing its status as a safe-haven asset*.
With economic uncertainties stemming from ongoing transformative shifts across industries and societies, such as rising protectionism and disruptive technologies, investors are increasingly on the hunt for alternative assets in diversified portfolios.
In the last three years, gold demand has risen sharply. Around the world, central banks are expecting an increase in their gold holdings as a proportion of their reserves in the next five years, according to a World Gold Council Survey released last June.
The LionGlobal Singapore Physical Gold Fund was created to address demand for the precious metal among Singapore-based investors. “By leveraging multiple avenues from digital banking to insurance platforms, the fund ensures accessibility for a broader investor base, from institutional clients to everyday savers seeking inflation hedges and long-term wealth preservation,” explained Mr Teo.
To give investors peace of mind, additional layers of protection – tangible and intangible – are embedded in the fund.
Le Freeport’s secure location helps keep its valuable physical assets secure from external harms like burglary or destruction. The allocated gold is also fully insured against risk of loss, damage and theft. Each bar of gold, which has a minimum fineness of 99.5 per cent to meet the stringent standards set by global precious metals authority LBMA, is uniquely identifiable and segregated under the fund’s assets.
Fund custodian Standard Chartered Bank is responsible for the gold’s secure storage and the facilitation of the purchase and sale of gold for the fund. It also serves as trustee, fund administrator and transfer agent.
Mr Francois Verlaine, regional head of financing and securities services for ASEAN and South Asia at Standard Chartered, believes that Singapore’s first insured and Singapore-vaulted physical gold fund would play a key role in elevating Singapore’s position as the leading financial centre.
“With the changing global trends in today’s world, we believe that this fund, which is locally managed, with its physical gold being directly custodised in Singapore, provides a fresh alternative investment option for investors in Singapore and the region,” he said.