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.
LBMA Gold Price AM
Fund’s Net Asset Value
Units in Circulation
Current representation of ownership to Gold per UnitApproximately 0.01 gram of Gold and cash
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.
The Fund ensures that its operation fully abides the principles of the Shariah Law, and is guided by the Amanie Shariah Advisors.
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!
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).
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 Short NameGOLDETF
Bloomberg TickerGOLDETF MK Equity
Minimum Trading Units100 units
Trading CurrencyMalaysian Ringgit (MYR)
Investing through Participating Dealers
Minimum Creation / Redemption Basket500,000 units
Base CurrencyUS Dollar (USD)
The Fund aims to provide investors with investment returns that closely track the performance of gold price.
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 objective. 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.
|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:
|Asset Allocation||Physical gold bars: Minimum 95% of the Fund’s NAV
Islamic money market instruments / Islamic deposits: Remaining of the Fund’s NAV
|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||0.30% 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
Malacca Securities Sdn Bhd
|Market Maker(s)||Affin Hwang Investment Bank Berhad
Malacca Securities Sdn Bhd
Third Party Research Reports
Independent Research Report on TradePlus Shariah Gold Tracker
Issued by Affin Hwang Investment Bank Berhad
- ETF, or exchange-traded fund is a collective investment scheme that invests in a basket of investment instruments (such as 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 trading 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.
Passive vs. Active
- ETFs are typically passively managed where its objective is to closely track the performance of its benchmark or its referenced index, irrespective of the outlook on the market.
- On the other hand, Unit Trust Funds (“UTF”) are typically actively managed, where the Manager has the flexibility to shift away from its optimal asset allocation depending on the Manager’s outlook of the market.
Higher trading frequency
- ETF units are traded on the stock exchange, providing investors with the opportunity to transact units at any point throughout the trading day.
- This defers from the subscription and redemption of units within a UTF, which can only be done once a day at a specific time.
- Given its passive investment style, ETFs typically have a lower cost as compared to UTFs.
- 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 typically charges below 1.00% in Management fees per annum.
- ETFs are also traded on Bursa Securities and allows investors to invest based on “number of units” as opposed to the “investment amount” used for UTFs. The current board lot size at Bursa Securities is 100 Units, whereas a typical UTF would require a minimum investment amount of MYR1,000.
- The Fund appoints Market Makers, whose role includes ensuring liquidity for the ETF on the secondary market.
- The Market Makers provide buy and sell quotes within a predefined spread (the difference between the buy and sell price).
- Through its inventory, the Market Maker is also able to ensure, to the best of their ability, that there is a buyer for every sell order, and a seller for every buy order.
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|
|Segregation and allocation of assets||
|Redemption of physical assets||
|Assets on loan||
- 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 0.30% 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.
- The Participating Dealer assists with the facilitation of creation and redemption of Units by the investors for the Fund.
- Investors are required to liaise with the Participating Dealer(s) for all creation and redemption transactions.
- 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 monthly 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|
|Backed by physical assets||
|Allows physical redemption||