Private Client Information
The BullionGold Facility
Target Market
The firm offers segregated bullion gold facilities for private investors and their juristic entities such as family trusts.
Objective
The product has the objective of providing clients with full exposure to title-owned physical gold bullion as a form of hard currency investment and as an alternative to holding cash in the bank denominated in local currency
Portfolio Description
Clients are invested in wholesale gold bullion Krugerrands as issued by
the South African Reserve Bank. The client’s bullion is identified as
belonging to the client and segregated in a high security facility. In terms
of the South African Reserve Bank Act 90 of 1989, the Krugerrand is legal
tender in South Africa and falls within the ambit of foreign exchange.
The objective is to invest in highly liquid legal tender bullion coins where
there is no numismatic value such that the investment is entirely one of
investing in ounces of gold.
Critical characteristics:
- no value added tax attributable to gold purchases, due to legal tender status
- high-volume supply guaranteed, by the SA Reserve Bank
- guaranteed liquidity at redemption, underwritten by the SA Reserve Bank
- full gold price received at redemption
- complete safety and security.
An overriding objective is the minimization of transaction and holding costs such that the product offers the most compelling value available for physical gold-owning investors.
Parties
Product Provider: SA Bullion Investor Services (Pty) Ltd
Scheme Manager: SA Bullion Management (Pty) Ltd
Manager’s auditor: Ernst & Young Inc., 35 Lower Long Street, Cape Town, 8001
Custodian: Rand Refinery Limited
Custodian’s auditor: Deloitte, Deloitte Place, The Woodlands, 20 Woodlands
Drive, Woodmead, Sandton.
Regulatory
SA Bullion Management operates under a special dispensation of the South
African Reserve Bank. SA Bullion Management is a Category II Financial
Services Provider. SA Bullion Investor Services is a Category I Financial
Services Provider.