Swiss wealth manager Julius Baer said on Monday it was launching a pure physical gold fund to address increasing demand by nervous clients to invest in the precious metal.
The fund invests exclusively in physical gold, mainly standard bars of 400 ounces or about 12.5 kilos that are stored in high-security vaults in Switzerland. Other gold exposure, for example through derivatives or metal accounts, is not allowed. “Our clients want to invest into a safe haven that has no counterparty or balance sheet risk,” said Stephen Mueller, from the physical gold team of Julius Baer. “We are creating a pure gold investment fund with no risk in the balance sheet.”
The fund will be listed on the SWX Swiss Exchange. Redemption in kind is possible. Gold, which is liked by investors in time of uncertainty, breached $1,000 per ounce for the first time in March. It has since fallen from its peaks but demand returned when the financial crisis deepened after the collapse of US investment bank Lehman Brothers. (Reuters)