Bullion Management Group Inc. (BMG) has expanded its line of precious metal bullion funds with the launch of BMG Gold BullionFund, the company said Monday.

The new fund is built on same model as BMG BullionFund, which invests only in gold, silver and platinum bullion.

Both funds are designed to provide a low-cost, medium-risk alternative for investors seeking to purchase and hold precious metals bullion, without the worry, trouble and cost associated with trading and storage.

BMG Gold BullionFund invests exclusively in uncompromised physical gold bullion. It is an open-end mutual fund trust that can be purchased and redeemed daily at Net Asset Value. As a result, it has the same liquidity as bullion itself. All bullion meets London Good Delivery Standards.

According to Nick Barisheff, president and CEO of Toronto-based BMG, the new BMG Gold BullionFund meets a specific need in the market place for a bullion-only gold fund without the liquidity constraints of a closed-end fund.

“Investors told us they wanted us to take the investment philosophy behind the success of BMG BullionFund and apply it to a gold-only bullion fund,” he says.

Following the BMG tradition of “bullion only” funds, BMG Gold BullionFund does not use derivatives, futures, options or currency hedging, nor will it invest in gold certificates. Units of the fund cannot be borrowed for shorting.

“We want to avoid the inherent risk and costs associated with those types of activities,” says Barisheff.

“Core holdings of a portfolio should start with fully allocated and insured physical bullion. There should be no derivatives or hedges of any kind, nor should there be any third-party claim on the bullion, counterparty risks or dependency on portfolio managers for trading strategies,” he says.

BMG funds are managed through its subsidiary Bullion Management Services Inc. The bullion holdings for both funds are allocated, insured and held in trust under a custodial agreement with The Bank of Nova Scotia in Toronto.

The minimum investment in Class A and F units is $1,000. The fund is available in both Canadian and U.S. dollars and is eligible for all registered retirement plans. The Fund Codes for Class A units are BMG200 (Canadian dollars) BMG201 (US dollars), and BMG202 and BMG203 respectively for Class F units.


Toronto-based Bullion Management Group Inc. is one of the world’s fast-growing precious metals bullion investment companies. Since 2002 BMG, through its subsidiary, Bullion Management Services Inc., has managed the CDN$290 million-plus BMG BullionFund, the world’s first open-end mutual fund trust with a fixed investment policy of purchasing equal dollar amounts of uncompromised gold, silver and platinum precious metals bullion. Now the gold-only fund, BMG Gold BullionFund, has been launched.

IE