TradePlus Shariah Gold Tracker

Malaysia’s 1st Shariah-compliant Commodity ETF

The TradePlus Shariah Gold Tracker ("Fund") provide investors a Shariah-compliant avenue to invest in physical gold without the hassle of storing or insuring gold bullion. The Fund closely tracks the returns of gold through an Exchange-traded Fund structure; where units are tradeable on Bursa Malaysia Securities.

Closing Price
 

 

NAV Price

As at    

IOPV Price

As at    

  • LBMA Gold Price AM
  • Fund’s Net Asset Value
  • Units in Circulation
  • Current representation of ownership to Gold per Unit
    Approximately 0.01 gram of Gold and cash
Last updated:  

Why invest?

It’s backed by physical gold

A minimum 95% of the Fund’s assets are held in physical gold; purchased only from gold refiners accredited by the London Bullion Market Association (“LBMA”). These gold bars are held in a segregated and allocated manner, safe-kept in a secured vault in Singapore.

It’s Shariah-compliant

The Fund ensures that its operation fully abides the principles of the Shariah Law, and is guided by the Amanie Shariah Advisors.

It’s yours

Your units will entitle you to a portion of the gold held by the Fund. Rest assured that the gold is fully allocated and held in a segregated basis!

It’s hassle-free

The Fund is listed on Bursa Malaysia Securities which is accessible via online trading platforms – or if we may – the comforts of your own home. More importantly, there is no need for you to worry over logistics, insurance, or the safety of your gold!

It’s offered in dual currency

The Fund is available for subscription in US Dollar (via the Primary Market) and tradeable in Malaysian Ringgit (via the Secondary Market).

It’s redeemable

You also have the option to redeem physical gold upon meeting the minimum redemption unit block.*

* Redemption unit block: 500,000 units (equivalent to an estimate of 5kg of gold), or such quantity as determined by the Manager from time to time and published on the Fund’s website.
All fees incurred throughout the process of collecting the physical gold shall be borne by the investor; which may include but not limited to logistic cost, insurance cost of the assets upon physical redemption, taxes (if any), etc.

How to invest?

Trading on Bursa Securities
  • Stock Code
    0828EA
  • Stock Short Name
    GOLDETF
  • ISIN Code
    MYL0828EA003
  • Bloomberg Ticker
    GOLDETF MK Equity
  • Minimum Trading Units
    100 units
  • Trading Currency
    Malaysian Ringgit (MYR)
Investing through Participating Dealers
  • Minimum Creation / Redemption Basket
    500,000 units
  • Base Currency
    US Dollar (USD)

Investment Objective

The Fund aims to provide investors with investment returns that closely track the performance of gold price.

Investment Strategy

The Manager will invest a minimum of 95% of the Fund’s NAV in physical gold bars purchased from the London Bullion Market Association (“LBMA”) accredited refineries to meet the Fund’s object. For liquidity purposes, the remaining balance of the Fund’s NAV will be invested in Islamic money market instrument, and/ or Islamic deposits. The Fund will be passively managed, leaving the Fund to be highly invested at all times, irrespective of the outlook on the underlying assets.

Fund Information

Listing Date 6 December 2017
Fund Launch Date 28 November 2017
Fund Category Shariah-compliant commodity Exchange-Traded Fund
Fund Type Gold price performance tracking fund
Investor Profile The Fund is suitable for investors who:
  • seek exposure into Gold through a Shariah-compliant investment structure, and
  • have a moderate risk tolerance level
Asset Allocation Physical gold bars: Minimum 95% of the Fund’s NAV
Islamic money market instruments / Islamic deposits: Remaining of the Fund’s NAV
Specific Risks
  • Currency risk
  • Concentration risk
  • Tracking error risk
  • Custodian risk
  • Risk related to the benchmark
  • Minimum redemption size
  • Passive investment management
  • Fluctuations in price of gold bars
  • Reliance on the gold provider
  • Limited recourse by unitholders
  • Sale of gold bars to pay fund expenses
  • Insufficient sources of recovery if fund assets are lost, damaged, stolen or destroyed
Base Currency US Dollar (USD)
Benchmark LBMA Gold Price AM
Financial Year End 31 December
Initial Approved Fund Size 1,000,000,000 units
Income Distribution There will be no distribution of income

Fees & Charges

Annual Management Fee 0.50% p.a.
Annual Trustee Fee 0.06% p.a. (excluding custody fee and charges) of the NAV of the Fund calculated and accrued daily using the Fund’s Base Currency.
Annual Custody Fee 0.20% p.a. of the value of the Gold Bars held with the Custodian, accrued daily and payable monthly using the Fund’s Base Currency.
Quarterly License Fee 0.0075% of the Peak AUM, subject to a minimum of USD250 and a maximum of USD10,000.

Parties to the Fund

Manager Affin Hwang Asset Management Berhad
External Fund Manager AIIMAN Asset Management Sdn Bhd
Participating Dealer(s) Affin Hwang Investment Bank Berhad
Market Maker(s) Affin Hwang Investment Bank Berhad
Fund Documents
  • Prospectus
    Download
  • Daily NAV & Creation/ Redemption Basket
    Download
  • Marketing Brochure
    Download
  • Monthly Factsheet
    N/A
  • Gold Bar List
    N/A
Fund Reports
  • Annual Reports
    N/A
  • Quarterly Reports
    N/A
Announcements
  • Notice Accompanying The Electronic Prospectus of TradePlus Shariah Gold Tracker
    28-11-2017
    Download

GENERAL

  • ETF, or exchange-traded fund is a collective investment scheme that invests in a basket of stocks, bonds, commodities, or other securities to mirror the performance of the index that it tracks.
  • ETFs are unique as they can be traded like a common stock on the stock exchange – and also experience price changes throughout the day as they are bought and sold.
  • In this case, the TradePlus Shariah Gold Tracker’s underlying asset is gold. Hence it mirrors the performance of gold price, or more precisely the LBMA Gold Price AM which is widely used as a principal global benchmark for daily gold price.
  • ETFs are typically passively managed where its objective is to closely track the performance of its benchmark or its referenced index – i.e. the TradePlus Shariah Gold Tracker’s objective is to provide investors with a performance that closely mirrors its benchmark – the LBMA Gold Price AM.
  • Units are traded on the stock exchange through the trading day, providing investors with the opportunity to transact units at any point during the trading day. This defers from the subscription and redemption of units within a unit trust fund (“UTF”), which can only be done once a day at a specific time.
  • Given its passive investment style, the general costs of trading an ETF is also lower than that of UTF. Management fees for a typical actively managed UTF ranges from 1.00 – 2.00% per annum, depending on the investment asset class. The passively managed ETF will charge no more than 0.50% in Management fees per annum.

ABOUT TRADEPLUS SHARIAH GOLD TRACKER

  • The TradePlus Shariah Gold Tracker (“Fund”) is an exchange-traded fund that provides investors a Shariah-compliant avenue to invest in physical gold without the hassle of storing or insuring gold bullion.
  • The Fund aims to provide investors with a performance that closely mirrors its benchmark, which is the LBMA Gold Price AM.
  • Through its ETF structure, units of the Fund can be traded on Bursa Malaysia Securities.
  • Over the centuries, gold has been interwoven into society as a unique asset of wealth and value.
  • Today, it has become an essential piece of a diversified investment portfolio and is widely considered as an effective wealth preservation tool during adverse and uncertain market conditions.
  • The commodity’s low correlation with most asset classes also allows it to be a suitable portfolio diversifier.
  Shariah-compliant Gold ETF Conventional Gold ETF
Underlying investments
  • Assets will need to be physically backed at all times.
  • i.e. the TradePlus Shariah Gold Tracker (“Fund”) is required to meet its asset allocation of 95% of the Fund’s NAV in physical gold bars.
  • Allows broader flexibility.
  • The fund may hold physical bars as well as derivatives or other forms of investments that provides investors to exposure into gold.
Segregation and allocation of assets
  • When safe-kept, all assets owned by the fund are segregated from the assets owned by other investors.
  • There will be no co-mingling of assets between the fund and other investors.
  • The gold will be placed in an allocated account for the Fund, providing the fund with full ownership of the assets.
  • While conventional structures may have similar practice, it allows greater flexibility thus allowing co-mingling of assets.
  • The conventional structure also allows for the fund to place its assets in unallocated accounts – which results in the fund to not have full ownership over the assets.
Shariah adviser
  • A Shariah adviser is appointed to ensure that the fund’s operations meet the strict guidelines and is in compliant with the Shariah requirements.
  • The advisers serve as an additional layer of checks through periodic reviews/ audits which are carried out for the certification of the fund
  • Not applicable
Redemption of physical assets
  • A Shariah fund allows for redemption of physical assets upon meeting the minimum redemption amount
  • Dependent on structure
  • Not all conventional structures provide the facility of physical asset redemption
Assets on loan
  • The fund may not loan out any of its assets for gains
  • The fund will have full ownership of all its assets at all times
  • Conventional funds have the option to loan its assets out for prospects of additional gains
  • The lending out of assets may potentially expose the fund to additional risks
Permissible investments
  • All investment carried out by the fund will be made into Shariah-compliant investments only
  • These include the purchase of gold, and any placement of deposits, as well as investments into money market instruments, if any
  • Unconstrained
  • Yes, the TradePlus Shariah Gold Tracker (“Fund”) is a passively managed fund.
  • The Manager, Affin Hwang Asset Management Berhad, does not take an active view on the outlook of the commodity – as such, the Fund will look to maintain a higher exposure into gold at all times irrespective of the outlook of the market.
  • The Fund would serve as a trading tool for investors to move in and out of the market dependent on their own views of the market.
  • All units created by the TradePlus Shariah Gold Tracker (“Fund”) are physically backed by gold bars that are purchased from refiners that are accredited by the London Bullion Market Association (“LBMA”) – which are of a minimum 99.50% fineness.
  • As such, the price of the Fund will move in line with the price of its underlying assets – gold.
  • Nevertheless, investors should note that the Fund may maintain an exposure of not more than 5.00% in liquid assets to cater to any fees incurred by the Fund.
  • Annual Management Fee - Currently 0.50% p.a. of the NAV of the TradePlus Shariah Gold Tracker (“Fund”) calculated and accrued daily using the Fund’s base currency (USD)
  • Annual Trustee Fee – Currently 0.06% p.a. (excluding custody fees and charges) of the NAV of the Fund calculated and accrued daily using the Fund’s base currency (USD)
  • Annual Custodian Fee – Currently 0.20% p.a. of the value of the gold bars held with the custodian, accrued daily and payable monthly using the Fund’s base currency (USD)
  • Quarterly Index Licence Fee – Currently 0.0075% of the Peak AUM, subject to a minimum of USD250 and a maximum of USD10,000
  • The investment amount will be dependent on prevailing unit price and number of shares purchased.
  • Trading on Bursa Malaysia Securities will based on a minimum of 100 units traded – transacted in Malaysian Ringgit only.
  • Trading on the primary market can be done through the Participating Dealer(s); where creation / redemption of units will be carried out with a minimum block size of 500,000 units – transacted in US Dollar.
  • You may refer to the latest list of Participating Dealer(s) of the TradePlus Shariah Gold Tracker here.
  • Yes, there is a cap to the total amount of redemptions acceptable by the TradePlus Shariah Gold Tracker (“Fund”) on a single Dealing Day.
  • The cap is in line to that provided by the Fund’s Gold Provider, which currently stands at 30 million units on a single Dealing Day.
  • Yes, the Gold Provider has ensured its services to provide a market for both the purchase and sale of gold for the TradePlus Shariah Gold Tracker (“Fund”).
  • However, purchase of gold would be dependent on market availability; and the sale of gold is subjected to a cap of 30 million units on a single Dealing Day.
  • Yes, investors may make in-kind redemption where units of the TradePlus Shariah Gold Tracker can be exchanged for physical gold.
  • Currently, the minimum in-kind redemption unit block is 500,000 units which is equivalent to approximately 5kgs of gold bars (while the balance will be given in cash component). The quantity of gold bars is only indicative and is subject to change from time to time.
  • In-kind redemption of physical gold will take place at the vault where the assets are safe-kept.
  • All fees incurred throughout the process of collecting the physical gold shall be borne by the investor – fees may include, but is not limited to logistics cost, insurance cost of the assets upon physical redemption, taxes (if any), etc.
  • The gold bars of the TradePlus Shariah Gold Tracker (“Fund”) are safe-kept in a secured vault in Singapore; in which the vault operator is a delegate of the Fund’s custodian.
  • The gold bars kept within the premise of the vault are insured through the Fund’s custodian.
  • The TradePlus Shariah Gold Tracker (“Fund”) is regulated and governed by Bursa Malaysia, and Securities Commission Malaysia – and all of its assets are held in trust by the Trustee, who acts in the best interest of investors.
  • A team comprising various parties including the Manager, Trustee, Shariah Advisor, and the Auditor will visit the vault to perform an audit on the assets where it is safe-kept at a frequency no less than once per annum.
  • Investors are able to view the list of assets held by the Fund which entails the number of gold bars held, its weight, refiner, as well as serial number.
  • The list is updated on a daily basis to cater to all transactions that may have taken place over the Fund’s business day.
  TradePlus Shariah Gold Tracker (“Fund”) Physical Gold Gold Investment Account
Regulated
  • Yes
  • Fund is regulated by both Bursa Malaysia, and Securities Commission Malaysia
  • No
  • Gold investment accounts offered by Financial Institutions are regulated by Bank Negara Malaysia
Backed by physical assets
  • Yes
  • Yes
  • Dependent
Allows physical redemption
  • Yes
  • Minimum redemption unit block is currently 500,000 units
  • Yes
  • Dependent
  • Redemption of physical assets would be dependent on the Financial Institution
Readily tradeable
  • Yes
  • Units may be traded on the securities exchange on any Business Day
  • Minimum trading size via Bursa Malaysia Securities is currently 100 units
  • Price would be based on prevailing market pricing – and dependent on willing buyer / willing seller basis
  • Dependent
  • Ability to trade the assets would be dependent on the type of assets held e.g. jewellery, gold bars / coins, etc.
  • Trades would largely be confined to parties such as jewellery stores, jewellery traders, and / or pawn shops
  • Yes
  • Transactions would be confined to prices provided by the Financial Institution
  • Bid / offer spread dependent on the Financial Institution
Insurance
  • Not required
  • Assets within the Fund would be insured based on the terms and conditions within the Custodian agreement
  • However, insurance would be required for withdrawals in the form of physical assets
  • Required
  • For safety purposes, insurance would be required to mitigate potential loss through theft or otherwise
  • Not required
  • However, insurance would be required for withdrawals in the form of physical assets
Holding costs
  • Cost would be comparatively lower than the option of holding physical assets
  • Cost would be comparatively higher given the additional costs required for insurance and storage
  • Cost would be comparatively lower than the option of holding physical assets