Singapore’s first locally developed physical gold exchange-traded fund, the LionGlobal Singapore Physical Gold ETF, is set to debut on the Singapore Exchange on March 26.
The launch will also mark the first gold ETF listing on the local bourse in 20 years, according to a statement by the issuer, Lion Global Investors, controlled by Singapore-based lender OCBC. The asset will be traded in both Singapore dollar and United States dollar denominations.
An ETF is an investment fund that holds a basket of securities, such as stocks and commodities, and trades on stock exchanges similar to an individual stock.
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Gold bars are displayed to be photographed at bullion house in Mumbai December 3, 2009. Photo by Reuters |
The initial offer period for the ETF will take place from March 6 to 20. Investors can subscribe to it through participating dealers.
The ETF, backed by physical gold that is insured and stored in vaults in Singapore, is intended to give investors cost-efficient exposure to the precious metal “at a time when traditional asset allocations may face greater challenges”, said Lion Global chief executive officer Teo Joo Wah.
“The listing of the LionGlobal Singapore Physical Gold ETF on SGX represents a natural progression in our efforts to broaden access to the physical gold market in Singapore,” said Teo.
Against a backdrop of global macroeconomic uncertainty and currency volatility, gold is widely regarded as a safe haven asset.
Investor concerns and heightened central bank purchases have helped drive prices higher, pushing gold to a record US$5,597.23 per ounce on Jan 29. It was at $5,124.73 at the time of publishing.
