TORONTO, Feb. 8 /CNW/ - Bullion Management Group Inc. (BMG) has expanded its line of precious metal bullion funds with the launch of BMG Gold BullionFund. The new fund invests exclusively in uncompromised physical gold bullion and is designed for investors seeking a core holding that offers long-term security and potential capital growth. BMG Gold BullionFund is an open-end mutual fund trust that can be purchased and redeemed daily at Net Asset Value. As a result, it has the same liquidity as bullion itself. All bullion meets London Good Delivery Standards.
Following the BMG tradition of "bullion only" funds, BMG Gold BullionFund does not use derivatives, futures, options or currency hedging, nor will it invest in gold certificates. Units of BMG Gold BullionFund cannot be borrowed for shorting.
"We want to avoid the inherent risk and costs associated with those types of activities," said Nick Barisheff, President and CEO of BMG. "Core holdings of a portfolio should start with fully allocated and insured physical bullion. There should be no derivatives or hedges of any kind, nor should there be any third-party claim on the bullion, counterparty risks or dependency on portfolio managers for trading strategies."
BMG Gold BullionFund is built on same model as BMG BullionFund, which invests only in gold, silver and platinum bullion. Both funds are designed to provide a low-cost, medium-risk alternative for investors seeking to purchase and hold precious metals bullion, without the worry, trouble and cost associated with trading and storage. BMG funds are managed through its subsidiary Bullion Management Services Inc. The bullion holdings for both funds are allocated, insured and held in trust under a custodial agreement with The Bank of Nova Scotia in Toronto.
According to Barisheff, the new BMG Gold BullionFund meets a specific need in the market place for a bullion-only gold fund without the liquidity constraints of a closed-end fund.
"Investors told us they wanted us to take the investment philosophy behind the success of BMG BullionFund and apply it to a gold-only bullion fund," he said.
The minimum investment in Class A and F units is $1,000. BMG Gold BullionFund is available in both Canadian and US dollars and is eligible for all registered retirement plans. The Fund Codes for Class A units are BMG200 (Canadian dollars) BMG201 (US dollars), and BMG202 and BMG203 respectively for Class F units.
For more detailed information, go to www.bmgfunds.com or go to www.bmgbullion.com/bmg_gold_bullionfund.html to view the introductory video on BMG Gold BullionFund.
Toronto-based Bullion Management Group Inc. is one of the world's fast-growing precious metals bullion investment companies. Since 2002 BMG, through its subsidiary, Bullion Management Services Inc., has managed the CDN$290 million-plus BMG BullionFund, the world's first open-end mutual fund trust with a fixed investment policy of purchasing equal dollar amounts of uncompromised gold, silver and platinum precious metals bullion. Now the gold-only fund, BMG Gold BullionFund, has been launched.
BMG BullionBars is a secure, cost-effective and convenient way for investors to buy and store certified investment-grade, Good Delivery Standards gold, silver and platinum bullion. BMG provides the utmost in privacy and protection in order to meet the most rigorous standards of wealthy clients who demand an unbroken continuance of discreet generational wealth. BMG's high level of commitment to our clients' privacy and security forms the core of our approach to business.
For more information on both products visit: www.bmgbullion.com
SOURCE BULLION MANAGEMENT GROUP INC.
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