Citibank to launch ‘Gold Rich Derivative Fund’ linked to gold spot price

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2008-07-07 11:04

Seoul--(뉴스와이어)--On July 7th, Citibank Korea (CKI) announced it will introduce ‘PCA Gold Rich Derivative Fund’, whose underlying asset is the London Gold PM Fix Price(GOLDLNPM). ‘PCA Gold Rich Fund’ managed by PCA Asset Korea invests in the actual gold spot price differentiating itself from most of existing funds that invest in equities of companies related to gold or other metals.

The GOLDLNPM is published by the London Bullion Market Association at 3pm London time everyday. The new fund seeks returns from the investment in OTC derivative that is linked to the yield of GOLDLNPM.

Eui-Man Hwang, head of CKI’s Investment Product Dept said that ‘Gold Rich Fund’ serves the needs of investors in recent days marked by inflation and increased volatility in the financial market. He stressed that the market situation where demand for gold is on a continuous rise also adds positive elements. Mr. Hwang explained that the recent gold price hike is driven by several factors such as increased gold consumption, rising industrial demand for gold in emerging markets such as India, China and Middle East countries, use of gold as a hedge for global inflation, expanded investment in gold by sovereign wealth funds and central banks following the weakening of US dollar, and increased demand for investment in gold for the introduction of gold-related products, whereas the output of gold mine is on a downward slide due to the increased mining cost. He forecasted base on such reasons that the gold price won’t go down easily.

PCA Gold Rich Derivative Fund is an open-end fund that allows investors to purchase/redeem the product at any time. The product is available at Citibank only until July 30 and the front-end load is 1% of investment amount.

웹사이트: http://www.citibank.co.kr