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The biggest impact of using blockchain in the investment management sector will be the improved security it brings.

New research (1) with institutional investors and wealth managers reveals that 56% believe the impact of blockchain on improving security measures will be ‘very high’ and a further 37% say it will be high.

The study is from Global Palladium Fund (GPF), which recently listed four metal Exchange Traded Commodities (ETCs) and is the first ETC provider to use Blockchain technology to record bar information into Distributed Ledger Technology thereby providing an extra layer of security and proof of ownership to the Issuer.   The use of Blockchain is in addition to the traditional recording processes used by the custodian.

When asked about the technology’s impact on other areas of the investment management sector, 52% of professional investors say it will be ‘very high’ on portfolio management, and this is followed by 50% who say this is about supporting regulatory compliance, and 43% who cite this when asked about improving operational efficiency.  Overall, 42% say blockchain’s impact on reducing costs will be ‘very high.’

Area of business for investment management firmsPercentage of professional investors who believe blockchain will have a very high positive impact on this area of business for fund managersPercentage of professional investors who believe blockchain will have a high positive impact on this area of business for fund managers
Security56%37%
Portfolio management52%34%
Regulatory compliance50%40%
Operational efficiency43%42%
Costs42%33%
Clearance processes40%46%
Client on-boarding and management35%44%

When it comes to automating sales through smart contacts, 63% of professional investors interviewed said the impact of blockchain will be very high, and a further 25% said it will be high.

Alexander Stoyanov, Chief Executive Officer of GPF said: “Blockchain can have a huge positive impact on every aspect of an asset manager’s business.  Increasingly, having blockchain at the centre of their operations, will become as important for fund managers as the investment strategies they employ. For example, provenance is becoming the centre of attention in commodities markets, and we are proud to be the first ETC issuer to be using blockchain to record metal bar ownership thereby demonstrating its practical applications to investors.”

Global Palladium Fund’s (GPF) has four new metal ETCs (gold, silver, palladium and platinum) listed on the Deutsche Börse and London Stock Exchange.  They have the lowest charges with total expense ratios (TER) ranging from 0.145% to 0.20%. Targeting Family Offices, wealth managers, institutional and other professional investors, the new physically-backed gold, silver, platinum and palladium ETCs will track the spot price of the respective metals they cover.

GPF’s new ETCs have a strong focus on ESG. LBMA-approved metal will be sourced from producers and suppliers who support the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining.

NTree International Ltd, a specialist in marketing, distribution and investor engagement, is leading the distribution and rollout of Global Palladium Fund’s new metal ETCs.  NTree has set up a dedicated brand, Metal.Digital as an education resource for professional investors with a focus on metals.

GPF ETCs listed on London Stock Exchange and Xetra

ETCLSE TickerXetra Ticker
GPF Physical Gold ETCTGLD0IIA
GPF Physical Silver ETCTSLV0IIB
GPF Physical Platinum ETCTPLT0IIC
GPF Physical Palladium ETCTPAL0IID

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