Dear Fintax Investor

Please find attached the latest fund fact sheets and commentary by MGIM. In October the Growth Fund delivered 2.4% and the Balanced Fund 1.8%.  

In the attached commentary, the MGIM team refer to the holding in the iShares Physical Gold Exchange Traded Commodity (ETC).  Like Exchange Traded Funds, ETCs are an Exchange Traded Product that you can buy and sell at any time on a stock exchange. But there are key differences between the two products. 

European Union regulations require ETFs to invest in a diverse range of securities. ETCs work around this by effectively being debt instruments. Think of them as being more like a bond rather than a fund. The obvious weakness of a bond is that you can lose your money if the issuer defaults. Physical gold ETCs guard against this by being fully backed by actual gold deposits. That collateral is lodged with reputable custodian banks and contractual guarantees ensure the gold is ringfenced for the benefit of the ETC’s shareholders. You can check your ETC’s list of custodians on its website, along with other details such as Good Delivery accreditation and even its inventory of gold bars.

Currently, this ETC holds 215.38 metric tonnes of gold in Trust at JPMorgan Chase. The ETC also adheres to the LBMA Responsible Sourcing Program to make sure the gold sourced does not contribute to terror financing. Please click on the image below for more information on this.

For more detailed information on the iShares Physical Gold ETC please click on the following link: https://www.ishares.com/uk/individual/en/products/258441/ishares-physical-gold-etc-fund

Please don’t hesitate to contact us should you have any comments or queries.

Growth Fund Fact Sheet – October 2021

Balanced Fund Fact Sheet – October 2021

Manager Commentary