With one-year Canadian treasury bills offering just slightly more than 1%, Bullion Management Services Inc., a BMG company, is offering cash-flow-starved investors a new open-end mutual fund that couples $0.07 per unit monthly fixed cash distributions with an underlying asset of uncompromised physical gold bullion.
The investment objective of BMG Gold Advantage Return BullionFund is to provide a secure, convenient, medium-risk alternative for investors seeking to indirectly hold gold bullion while receiving monthly cash flow from capital gains in a tax-efficient manner. The new fund invests only in Class I units of BMG Gold BullionFund.
BMG cites figures from the World Gold Council that that show that gold has delivered consistently high returns, with annualized returns of 13.45% over the past ten years and 16.21% over the past five years.
“If gold repeats this performance,” says Nick Barisheff, president and CEO of BMG, “investors will receive cash distributions in excess of 8% from their capital gains, while at the same time experiencing a growth in their capital.”
For investment portfolios overwhelmingly invested in equities and bonds, BMG Gold Advantage Return BullionFund also provides an extra layer of diversification in an asset class that is negatively correlated to traditional asset classes.
The minimum investment in Class A and Class F units is $1,000. Units are available to purchase in Canadian or U.S. dollars. The current net asset value per unit for Canadian dollar Class A units is $10.15.
Markham, Ont.-based Bullion Management Group Inc. (BMG) is a precious metals bullion management company whose mission is to be a global leader in providing secure, cost-effective and transparent ways to purchase and store physical bullion.