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Bank of Montreal Launches Gold Bullion Trust
Published Thursday, June 09, 2016 by Ryan Allway
The Bank of Montreal plans to launch a new vaulted gold bullion trust fund that will issue $500 million worth of gold deposit receipts, according to an S-1 SEC filing. Under the terms, the trust will issue depositary receipts representing undivided beneficial ownership in a fixed quantity of gold bullion that will be held in an account operated by the Bank of Montreal at the Royal Canadian Mint, making it one of a handful of gold bullion funds.

Click Here: Read the Entire S-1 SEC Filing

According to the regulatory filing made on June 6, 2016, “The objective of the Trust is to provide a secure and convenient way for investors to make an investment in unencumbered, allocated, physical Gold Bullion on a spot basis. As a result, at any given time, the value of the Gold Deposit Receipts is intended to reflect the spot price of gold held by the Trust for the holders of Gold Deposit Receipts.”

There are three different classes of the trust with fees that vary from 2% to 4%.

The news comes as gold prices have soared past $1,250 per ounce following its dramatic decline earlier this year.