Nornickel’s GPF Offers Metals Mix to Let Investors Ride Green Wave

Russian miner Nornickel said that its distributor, Global Palladium Fund (GPF), had launched GPF Physical Electric Vehicle Metals Exchange Traded Commodity (ETC), a metals mix focusing on the needs of an environmentally-friendly electric vehicles industry.

“When approaching this theme, it can be hard for investors to know which equities to select, particularly when valuations are stretched and it is unclear which technologies or companies will be the winners. GPF is providing investors with an innovative physically-backed solution that offers a different risk and return profile to equity investments,” GPF CEO Alexander Stoyanov said, commenting on the new product.

There are now five metals in the mix. Their weights, capped at 40%, are initially set at 40% for copper, 28.13% for palladium, 18.65% for nickel, 11.45% for cobalt, and 1.77% for platinum, and are subject to annual reviews to adjust to changing demand.

The metals backing the ETC will be stored in London Metals Exchange warehouses in Rotterdam, as well as in Swiss- and London-based vaults of London Platinum and Palladium Market.

In a few weeks, the contract will be listed first on Borsa Italiana, and then also on Xetra, London Stock Exchange and SIX. The management fee for GPF Physical Electric Vehicle Metals ETC is 0.8%.

Amid the global shift from fossil fuel economy to greener tech, Nornickel’s new offer is seen as yet another push to capitalize on the trend. In recent years, Nornickel has been heavily investing in environmental projects, community support and energy infrastructure upgrades.

Initially launched in 2016 to help stabilize the palladium market, GPF rolled out a range of single-commodity ETCs last year. In September, it presented GPF Physical Carbon Neutral Nickel ETC reflecting Nornickel’s efforts in reducing carbon footprint in its production activities.

According to GPF’s website, the fund has almost $120 million in assets under management, as of January 31.