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Silver, Platinum and Gold Bullion: A Critical Component for Every Portfolio
BMG BullionFund is an open-end mutual fund trust that invests exclusively in equal proportions of unencumbered, fully allocated gold, silver and platinum bullion.
What are the benefits of owning a mutual fund that holds bullion?
Protects portfolios from market fluctuations
Precious metals can rise when stocks, bonds, real estate and Treasury bills fall, acting as a hedge against the instability of other investments.
Minimizes the impact of inflation
Platinum, silver and gold bullion prices typically increase with rising inflation, meaning that precious metal commodity funds offer insurance against inflation.
Provides portfolio diversification
Diversification protects investment portfolios. Ibbotson Associates, a world-renowned authority on asset allocation theory, concluded that investors could improve portfolio returns and reduce risk by holding 7% - 16% of silver, platinum and gold bars. No other investment reacts to market downturns as well as precious metals bullion; it is the best-known portfolio insurance.
Tactical asset allocation - taking advantage of normal market cycles
The market moves in cycles lasting approximately 20 years. It is important to rebalance your portfolio after trend changes in order to maximize returns and reduce risk.
Why invest in the BullionFund commodity fund?
Open-end mutual fund trust
BullionFund precious metal assets are held in trust. There can be no third-party claims. You can buy or sell your units daily at Net Asset Value.
Secure
BullionFund is structured to eliminate any risk associated with storage; the bullion is held in a segregated, allocated section of the Bank of Nova Scotia's main branch in Toronto. The bullion is not subject to any third-party claims, and can only be removed in order to meet redemption requests. RBC Dexia controls BullionFund's bank accounts and provides back-office services. Bullion holdings are verified annually by BullionFund's auditors, Ernst & Young LLP.
Cost-effective
Bullion is purchased at a small premium over the prevailing spot price, net of commissions, including insured delivery costs and bar charges.
Liquidity is not an issue
The daily trading volume on global bullion markets is large enough to accommodate purchases and redemptions of any size.
Internal diversification
By purchasing all three precious metal commodities, BullionFund maximizes your bullion returns and reduces volatility over the long-term.
BullionFund has a fixed investment policy
Your investment in silver, platinum and gold bullion bars does not depend on any particular company's promise or ability to perform. BullionFund only
purchases equal dollar amounts of gold, silver and platinum bullion. It does not buy futures or certificates and does not rebalance, hedge, leverage or lease holdings.
Tax-efficient
Unlike most other mutual funds, there are no sales or withholding taxes on bullion purchases in Canada. BullionFund is approved for all Canadian registered plans. All redemption taxes flow through to the redeeming unit holder.
The Dow-Gold ratio peaked at 40:1 in 1999. With the ratio currently at 20:1 and falling, NOW is the time to increase portfolio allocations of gold bullion bars and other precious metals. The current trend favouring physical assets such as gold, silver and platinum could last at least another 10 years.
BullionFund makes it easy, convenient and cost-effective to purchase and hold real platinum, silver and gold bullion. Previously, investments in precious metals were only available through commodity funds and mining stocks. Now investors can purchase and hold physical gold, silver and platinum bullion in both their investment portfolios and/or all registered accounts, such as RRSPs.
Investment in bullion, especially gold, silver and platinum, should not be considered a short-term speculation, rather a long-term investment that always forms part of your portfolio.
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You can invest in the Bullion Fund through most financial advisors and brokers, as well as all of the major banks and online discount brokers. If your financial advisor is not registered to sell the fund, please have him or her contact Bullion Management Client Services at (866) 241-6484 to discuss your needs.
3/9/2010
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