Update : Jul. 02, 2010
[Tokyo Stock Exchange, Inc.]
Tokyo-July 2, 2010 -Today, four Exchange Traded Funds (ETF) of the Fruit of Gold series (gold, platinum, silver and palladium) have commenced trading on the Tokyo Stock Exchange (TSE).
With Mitsubishi UFJ Trust and Banking Corporation as the trustee, each security is backed by physical allocated precious metal for the benefit of Fruit of Gold shareholders. The ETFs are based upon the futures price at Tokyo Commodity Exchange and calculated into the spot physical price for gold, platinum, silver or palladium The underlying physical metals are stored by Mitsubishi Corporation acting as custodian.
This will be the first time that physical metals allocated to an ETF will be vaulted locally in Japan.
The listing of the Fruit of Gold series on the TSE enables Japanese institutional and retail investors to access the benefits of physical precious metals securely, efficiently and cost effectively.
Commenting on the launch, Atsushi Saito, CEO, TSE said:
"The Japanese investors have easier access to precious metals with the listing of Fruit of Gold series. We are pleased to have the precious metal physical ETF structured in Japan for the first time and welcome it in the market. We hope that the TSE will contribute to the further expansion of the Japanese financial market by acting as the core exchange in Asia. In this context, we feel it is significant that these ETF's are listed on the TSE."
Aram Shishmanian, CEO of the World Gold Council, added:
"The addition of another gold ETF, with the option of physical gold delivery, is a welcome development. This Japanese-led product will give fund managers and consumers the confidence to hold gold as a way of diversifying the Japanese pension market, which is primarily held in bank deposit accounts."
"Investment demand for gold has risen steadily over the last decade and continues to be the fastest growing category of global gold demand. Investors worldwide have come to recognize that portfolios which contain even a small allocation to gold are proven to be generally more robust, particularly in the context of continued economic and market uncertainty. The World Gold Council is actively working with Mitsubishi UFJ Trust and Banking Corporation and other financial institutions to ensure that gold's risk diversification properties are more widely understood."
World Gold Council
The World Gold Council's mission is to stimulate and sustain the demand for gold and to create enduring value for its stakeholders. It is funded by the world's leading mining companies.
Tokyo Stock Exchange
Tokyo Stock Exchange, Inc. (TSE) is one of the leading global exchanges and the largest securities market in the Asia-Pacific region. The TSE is best known for its massive equities market, valued at JPY300 trillion (as at end of May 2010) and it also boasts the largest market for Japanese securities derivatives such as TOPIX futures and TOPIX options. Besides its dynamic market, the TSE also calculates and publishes Japan's most comprehensive family of indices. Among these is TOPIX (Tokyo Stock Price Index), the main index composed of all Japanese common stocks listed on the TSE First Section, which is widely used as a benchmark for the Japanese stock market.
Tel: 03-3665-1313 / 03-3665-1948
WGC Contact: (MS&L Japan)