A silver lining at BMG

A mutual fund focused on silver bullion now is available from Toronto-based Bullion Management Group Inc. (BMG). BMG Silver BullionFund invests exclusively in silver bullion and is meant for investors looking to diversify their precious metals investments. The fund is priced at net asset value and thus does not have the liquidity issues associated with a closed-end fund or ETFs, according to BMG. BMG Silver BullionFund is eligible for investment in TFSAs, RRSPs and registered education savings plans. The fund is managed by BMG subsidiary Bullion Management Services Inc. All bullion holdings for BMG funds are allocated, insured and held in trust under a custodial agreement with Toronto-based Bank of Nova Scotia. BMG was founded in 2002 and is a dedicated guardian of bullion. The company has offices in several countries, including Panama and the U.K. Advisor commissions are 0%-5% for front-end sales or 3% for the low-load option. Redemption fees begin at 3% in Year 1 and end at zero after Year 3 for the low-load schedule. Trailing commissions are 1% for front-end sales; and 0.5% for the first 3 years of low-load sales, and 1% thereafter. Management fees are 2.25% for A-class units and 1.25% for F-class units. Minimum investment is $1,000.

(fcollie@investmentexecutive.com).