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
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LBMA Gold Price AM
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Fund’s Net Asset Value
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Units in Circulation
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Current representation of ownership to Gold per UnitApproximately 0.01 gram of Gold and cash
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?
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Stock Code0828EA
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Stock Short NameGOLDETF
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ISIN CodeMYL0828EA003
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Bloomberg TickerGOLDETF MK Equity
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Minimum Trading Units100 units
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Trading CurrencyMalaysian Ringgit (MYR)
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Minimum Creation / Redemption Basket500,000 units
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Base CurrencyUS 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 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.
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:
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| 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 |
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| 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 |
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Independent Research Report on TradePlus Shariah Gold Tracker
Issued by Affin Hwang Investment Bank Berhad06-06-2018Download
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 | |
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| Underlying investments |
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| Segregation and allocation of assets |
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| Shariah adviser |
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| Redemption of physical assets |
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| Assets on loan |
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| Permissible investments |
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- 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.
- 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 | |
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| Regulated |
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| Backed by physical assets |
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| Allows physical redemption |
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| Readily tradeable |
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| Insurance |
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| Holding costs |
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