Julius Baer Precious Metals
Funds
Fund Information Sheet
A safe investment since ancient times. The precious metals gold, silver,
platinum and palladium are not only used in jewellery production and various
industrial areas. Thanks to their diversification characteristics, they are also an
interesting topic for investors. The JB Precious Metals Funds are four attractive
investment products that are fully backed by physical metal.
The JB Precious Metals Funds at a glance:
• The funds invest only in physical metals stored exclusively
in Switzerland
• Professional currency hedging of the CHF, EUR and GBP
shares versus the USD; investors thus participate fully in
the price development of the metals
• The JB Precious Metals Funds are fully backed by physical
precious metals.
• Holders of share class A may, on request, receive payment
in kind in the form of standard bars or smaller units.
Currency hedging
Precious metals are traded in US dollars. Non-USD investors,
such as Swiss investors in precious metals, therefore face
currency risks that may be incurred when converting USD into
the currency of the custodial account.
Precious metals success factor – debt-free and real benefit.
The precious metals gold, silver, platinum and palladium all
offer special properties in various economic cycles. In times of
significant uncertainty, precious metals are a store of value and
offer outstanding diversification characteristics in a portfolio
context. Due to their varied industrial uses, precious metals are
also of considerable importance in growth markets. Regardless
of how different their physical and chemical characteristics
may be, one thing they have in common is their finite reserves
and the fact that, as a rule, they cannot be held liable for thirdparty debt. Gold and silver therefore offer protection against
declining value stemming from debt-driven inflation, while
the demand for platinum and palladium is directly buoyed by
economic growth.
Physical backing
The JB Precious Metals Funds are fully backed by physical
precious metals. Holders of share class A may, on request,
receive payment in kind in the form of standard bars or smaller
units.
In October 2008, GAM launched the JB Physical Gold Fund,
the first physically-backed gold ETF worldwide with currency
hedging. GAM’s precious metals range was completed in
January 2010 with the addition of the JB Physical Silver Fund,
the JB Physical Palladium Fund and the JB Physical Platinum
Fund. While the risk/return properties differ depending on
the economic cycle, the funds share the following attributes,
including, amongst other things:
These risks are eliminated in the CHF, EUR and GBP unit
classes, since all currency units are hedged against the
US dollar. The investor therefore participates fully in the
performance of the precious metal in question.
Security and liquidity
Security and liquidity are at the forefront of GAM’s funds. There
is no issuer risk related to JB Precious Metals Funds, since the
funds are physically backed in full by allocated and segregated
standard bars. The fund units can therefore be traded on a
daily basis, thanks to their listing in the ETF segment on the SIX
Swiss Exchange.
Swiss made
The Swiss funds invest solely in physical precious metals,
which are held exclusively and wholly in Switzerland.
JB Physical Gold Fund
The JB Physical Gold Fund has been a true success story since
its launch in October 2008. It invests in physical gold in the
form of standard bars (around 12 kg / 400 ounces). The flagship
of our range of precious metals funds is the first gold ETF
worldwide with currency hedging.
Julius Baer Precious Metals – Physical Gold Fund
Fund data, A shares, USD (as at 30/09/2016)
Strong demand for gold is being met with an increasingly
short supply. Despite state-of-the-art exploration technology,
the primary supply of gold has fallen by around 1.3% annually
since 2001. This development, coupled with growing demand
for debt-free real assets, is heightening investor awareness
of gold. Key factors influencing gold are the expansionary
monetary policy of the most important central banks, global
government indebtedness and growing uncertainty regarding
the global economy. Although intervention by the central banks
in the currency markets is shoring up liquidity in the financial
markets, the future holds considerable potential for inflation.
The latter is fuelling the demand for gold, since it is regarded as
a debt-free currency whose real value will continue to exist.
Fund holdings in gold ETPs
(Exchange Traded Products)
1
1'900
82
Gold USD/oz (r.h.s.)
ETP fund holdings mln oz
77
1'700
1'600
72
1'500
67
1'400
62
1'300
57
1'200
52
1'100
1'000
47
Dec-10
1'800
Jun-12
Nov-13
01/09/2010-18/03/2016
Source: Bank Julius Baer & Co. Ltd - Commodity Research 2016
Apr-15
Sep-16
ISIN
CH0044781141
Domicile
Switzerland
Legal structure
FCP under the law of Switzerland
Performance 09/15-09/16
+18,2%1
Performance 09/14-09/15
-8,81%1
Performance 09/13-09/14
-8,66%1
Performance 09/12-09/13
-25,63%1
Performance 09/11-09/12
+9,16%1
Total fund assets
2,001.6 million
Base currency
USD
Available currencies
USD; CHF, EUR, GBP (hedged)
Date activated
24/10/2008
Benchmark
GOLD London
PM Fixing / USD
Fund management
company
GAM (Luxembourg) S.A.
Exchange
SIX Swiss Exchange
Rolling performance, complete 12-month figures
Past performance is not an indicator of current or future trends. The performance values refer to the net asset
value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g.
transaction and custody costs of the investor).
JB Physical Silver Fund
The JB Physical Silver Fund, which has been in existence since
January 2010, invests in physical silver in the form of standard
bars (approx. 30 kg / 1,000 ounces). It is the first silver ETF
worldwide with currency hedging.
Julius Baer Precious Metals – Physical Silver Fund
Fund data, A shares, USD (as at 30/09/2016)
Silver is used predominately in industrial applications. With
its thermal and electric conductivity, silver is indispensable,
especially in the electronics industry. Silver is also used in
jewellery manufacture and in medical applications, owing to its
antibacterial properties. Institutional and private investors use
silver within their portfolios, since it features gold’s monetary
attributes and, at the same time, is boosted by demand
in growth cycles because of its wide range of industrial
applications.
Fund holdings in silver ETPs
(Exchange Traded Products)
800
Silver USD/oz (r.h.s.)
ETP fund holdings mln oz
700
600
50
45
40
1
500
35
400
30
300
25
200
20
100
15
0
Dec-10
10
Jun-12
Nov-13
01/09/2010-18/03/2016
Source: Bank Julius Baer & Co. Ltd - Commodity Research 2016
Apr-15
Sep-16
ISIN
CH0106405845
Domicile
Switzerland
Legal structure
FCP under the law of Switzerland
Performance 09/15-09/16
+31,1%1
Performance 09/14-09/15
-15,1%1
Performance 09/13-09/14
-21,7%1
Performance 09/12-09/13
-37,9%1
Performance 09/11-09/12
+12,9%1
Total fund assets
264.4 million
Base currency
USD
Available currencies
USD; CHF, EUR, GBP (hedged)
Date activated
06/01/2010
Benchmark
SILVER LBMA Price / USD
Fund management
company
GAM (Luxembourg) S.A.
Exchange
SIX Swiss Exchange
Rolling performance, complete 12-month figures
Past performance is not an indicator of current or future trends. The performance values refer to the net asset
value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g.
transaction and custody costs of the investor).
JB Physical Palladium Fund
The JB Physical Palladium Fund invests in physical palladium in
the form of standard bars (approx. 5 kg / 150 ounces). The fund
is the first palladium ETF worldwide with currency hedging.
Julius Baer Precious Metals – Physical Palladium Fund
Fund data, A shares, USD (as at 30/09/2016)
Palladium is used mainly in the production of catalytic
converters for petrol engines and in fuel cells to convert
hydrogen and oxygen into electricity. It is also an excellent
catalyst to speed up chemical reactions, especially the
hydrogenation and dehydrogenation of hydrocarbons. Growing
sales of the automobile industry - related to sales promotions
in emerging economies - should influence palladium prices
in a sustainable fashion. Sanctions as a result of geopolitical
tensions (e.g. in Russia) as well as unrest and strikes in
South African mines could lead to supply shortages and thus
accelerate increases in the price of the metal.
Fund holdings in palladium ETPs
(Exchange Traded Products)
3'500'000
950
Palladium USD/oz (r.h.s.)
ETP fund holdings oz
900
850
3'000'000
800
750
2'500'000
700
650
2'000'000
600
550
1'500'000
500
450
1'000'000
Dec-10
Jun-12
Nov-13
01/09/2010-18/03/2016
Source: Bank Julius Baer & Co. Ltd - Commodity Research 2016
Apr-15
Sep-16
1
ISIN
CH0106407205
Domicile
Switzerland
Legal structure
FCP under the law of Switzerland
Performance 09/15-09/16
+8,6%1
Performance 09/14-09/15
-15,2%1
Performance 09/13-09/14
+6,1%1
Performance 09/12-09/13
+12,3%1
Performance 09/11-09/12
+3,9%1
Total fund assets
85.5 million
Base currency
USD
Available currencies
USD; CHF, EUR, GBP (hedged)
Date activated
06/01/2010
Benchmark
Palladium LBMA Price / USD
Fund management
company
GAM (Luxembourg) S.A.
Exchange
SIX Swiss Exchange
Rolling performance, complete 12-month figures
Past performance is not an indicator of current or future trends. The performance values refer to the net asset
value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g.
transaction and custody costs of the investor).
JB Physical Platinum Fund
The JB Physical Platinum Fund, which was launched in
2010, invests in physical platinum in the form of standard
bars (approx. 5 kg / 150 ounces). It is the first platinum ETF
worldwide with currency hedging.
Julius Baer Precious Metals – Physical Platinum Fund
Fund data, A shares, USD (as at 30/09/2016)
Bearing in mind that demand for platinum is largely controlled
by the automotive and jewellery industry, it is therefore linked
to European economic development, since roughly 50% of
production is used for diesel catalytic converters. Increasingly
strict European emission regulations are increasing pressure
on manufacturers to produce environmentally-friendly diesel
engines. Another important buyer of platinum is the jewellery
industry. Particularly in emerging markets, jewellery is
becoming an increasingly important status symbol. These
drivers should continue to increase demand for platinum. Due
to the closure of certain mining projects in South Africa, the
world’s largest producer of platinum, supply of platinum is likely
to tighten in the near future.
Fund holdings in platinum ETPs
(Exchange Traded Products)
1
3'000'000
Platinum USD/oz (r.h.s.)
ETP fund holdings oz
2'000
2'500'000
1'500
2'000'000
1'000
1'500'000
500
1'000'000
Dec-10
Jun-12
Nov-13
01/09/2010-18/03/2016
Source: Bank Julius Baer & Co. Ltd - Commodity Research 2016
Apr-15
Sep-16
ISIN
CH0106406215
Domicile
Switzerland
Legal structure
FCP under the law of Switzerland
Performance 09/15-09/16
+13,2%1
Performance 09/14-09/15
-30,6%1
Performance 09/13-09/14
-8,4%1
Performance 09/12-09/13
-15,9% 1
Performance 09/11-09/12
+9,7%1
Total fund assets
87.3 million
Base currency
USD
Available currencies
USD; CHF, EUR, GBP (hedged)
Date activated
06/01/2010
Benchmark
Platinum LBMA Price / USD
Fund management
company
GAM (Luxembourg) S.A.
Exchange
SIX Swiss Exchange
Rolling performance, complete 12-month figures
Past performance is not an indicator of current or future trends. The performance values refer to the net asset
value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g.
transaction and custody costs of the investor).
Correctly positioned for every cycle
Since the start of this year, concerns about a renewed
weakness in the global economy have been growing steadily.
The associated higher risk aversion among market participants
triggered an increased demand for precious metals and, as a
result, ongoing price rises. Macroeconomic stability has yet
to materialise, or is extremely fragile, as can be seen from the
constantly low inflation rate expectations. Therefore, many
central banks are forced to continue with their resolutely
expansionary measures. The strong expansion of the money
supply is significantly increasing the likelihood of inflation in the
future. Against the current backdrop of lower and even falling
real interest rates, gold can help protect purchasing power to a
certain degree.
Gold is still seen as a safe haven in times of high volatility, and
will most likely remain in demand as an effective currency.
As a general rule, precious metals offer good diversification
characteristics and are therefore favourable hedging
instruments within a portfolio.
Anticipate growth phases with white precious metals
The price of silver climbed to over USD 49 in April 2011, the
highest level for 30 years. Silver has been correcting sharply
since then, moving almost sideways for a while. Since the
beginning of this year, there has been a significant increase
in the demand for silver, with the price being driven strongly
upwards. After the price of gold had risen continually,
investments in silver were increasing considerably, which
sparked an impressive drive to catch up. Furthermore, the
industry sector in China developed more strongly than
expected, creating another positive impact on the price of
silver. If the global economy shows signs of a sustained
recovery, and industrial production picks up, then silver will
most likely witness stable prices.
Platinum developed positively this year, due to the more robust
trend witnessed in the industry sectors of Asian countries.
With the car industry in particular performing somewhat
less strongly than expected, platinum is now in a more solid
environment. Low petrol prices have again increased the
demand for cars. In particular, precious metal is benefiting
from tensions on the supply side. The shutting down of mining
projects and strikes in South Africa are increasingly causing a
supply shortage and, as a result, could lead to stable or even
rising prices.
Source of all data (unless otherwise stated): GAM
Since the beginning of 2016, palladium has again been moving
upwards and has experienced a strong price increase over the
past few months. Palladium is benefiting, in particular, from the
more stringent emission regulations and the increased demand
for cars as a result of lower petrol prices. Furthermore, the
market is anticipating a broadening of the future supply deficit.
The base for palladium has, compared to platinum, been
bolstered by a keener demand. Possible unrest and strikes
in South African mines could also bring about a further price
push.
Regardless of the short-term market developments, we
recommend precious metals, in any cycle, as key components
of a portfolio due to their good diversification characteristics.
They generally profit from their aura as effective currencies.
Whilst gold and silver enjoy a cash value status in an
inflationary environment, platinum and palladium benefit during
high-growth cycles.
Buy
JB Precious Metals Fund units can be bought and sold on the
secondary market through the SIX Swiss Exchange. Orders for
all four metals are accepted on exchange trading days at the
following times from 9:00 a.m. to 5:30 p.m. CET.
Units may also be underwritten or returned on the primary
market directly with the fund via Transfer Agent at NAV (cut-off
times: silver 11:00 a.m. CET, platinum and palladium 2:00 p.m.
CET, gold 3:00 p.m. CET).
Costs
Trades of less than CHF 500,000 on the primary market are
currently subject to issuing commissions of 3%* or redemption
commissions of 1%*. Bid/offer prices are quoted on the
secondary market. The custodial bank may also charge
brokerage fees for conducting the trade on the stock exchange.
Stamp duty (0.075%) is charged on trades concluded on the
SIX Swiss Exchange.
Settlement
Units can only be settled through partners with access to SIX
SIS (formerly SEGA).
Share class A
(with physical delivery)
ISIN USD
ISIN CHF
ISIN EUR
ISIN GBP
Management
fee
Julius Baer Physical Gold Fund
CH0044781141
CH0044781232
CH0044781174
CH0103447766
0.40% p.a.
Julius Baer Physical Silver Fund
CH0106405845
CH0106405894
CH0106405860
CH0106405928
0.60% p.a.
Julius Baer Physical Platinum Fund
CH0106406215
CH0106406280
CH0106406231
CH0106407049
0.50% p.a.
Julius Baer Physical Palladium Fund
CH0106407205
CH0106407239
CH0106407213
CH0106407254
0.50% p.a.
Share class AX*
(without physical delivery)
ISIN USD
ISIN CHF
ISIN EUR
ISIN GBP
Management
fee
Julius Baer Physical Gold Fund
CH0044781257
CH0044821731
CH0044821699
CH0103447790
0.32% p.a.
Julius Baer Physical Silver Fund
CH0106405951
CH0106406199
CH0106406181
CH0106406207
0.36% p.a.
Julius Baer Physical Platinum Fund
CH0106407098
CH0106407171
CH0106407155
CH0106407197
0.30% p.a.
Julius Baer Physical Palladium Fund
CH0106407262
CH0106407320
CH0106407312
CH0106407353
0.30% p.a.
* “AX”-denominated share classes have an identical set-up as the A share class and will be fully collateralized with the respective physical precious metal. However, in the case of the AX share class, physical
delivery and the payment of reimbursements or retrocessions are explicitly excluded in the fund contract and the prospectus.
For more information, please visit www.gam.com
Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. No liability is assumed for the accuracy and completeness of the information. Opinions and assessments contained in this document may change and reflect the point of view of GAM Investment Management (Switzerland) Ltd. in the current economic environment. This document qualifies as marketing material. Investments should only be made after a thorough reading of the
current prospectus and/or the fund regulations, the current simplified prospectus (or the Key Investor Information Document, as soon as it is available), the articles of
association, and the current annual and semi-annual reports (the “legal documents”), as well as after consulting an independent finance and tax specialist. The value
of the units and the return they generate can go down as well as up. They both are affected by market volatility and by fluctuations in exchange rates. GAM Investment Management (Switzerland) Ltd. does not assume any liability for possible losses. The performance of past values and returns is no indicator of their current or
future development. The performance of values and returns does not include the fees and costs which may be charged when buying, selling and/or switching units.
GAM Investment Management (Switzerland) Ltd. is not a member of the Julius Baer Group. The fund described here is an investment fund according to Swiss law
(other funds for traditional investments) and is admitted for public distribution and offering exclusively in Switzerland. Particularly, the funds are not registered and,
therefore, may not be offered for sale or be sold in the United States of America and their dependencies. Fund Management Company is GAM Investment Management (Switzerland) Ltd., Hardstrasse 201, P.O. Box, CH-8037 Zurich. Custodian is Bank Julius Baer & Co. AG, Bahnhofstrasse 36, P.O. Box, CH-8010 Zurich.