Wednesday, 27 August 2014
Last updated 24 min ago
Feb 4 2014 | 2:49pm ET
Tocqueville Bullion Reserve, a private partnership that will invest 100% of its net assets in gold bullion, launched in January with assets of $50 million.
Billed as “the first institutional-grade vehicle to offer real ownership of physical gold,” TBR was launched by TERA, a limited partnership consisting of John Hathaway, senior managing director of Tocqueville Asset Management; Robert Kleinschmidt, president and CIO of Tocqueville; and Simon Mikhailovich and Michael Sollott, co-founders and partners of Eidesis Capital.
Hathaway told FINalternatives the partnership was designed to help manage systemic risks revealed during the global financial crisis and later through Refco, MF Global, and the Cyprus banking crisis.
"Despite the best efforts of monetary authorities," said Hathaway, "systemic risks have not abated and are resurgent across the emerging markets."
By storing gold bullion bars outside of the financial infrastructure—in insured, private, non-bank vaults in Switzerland, Singapore, Hong Kong and the U.S.—TBR allows investors to "maintain liquid emergency reserves that do not rely on financial counterparties or functioning capital markets."
Hathaway said initial investors in TBR included major gold producers, wealthy individuals and family offices.
TBR's partnership structure, said Hathaway, ensures it is subject to the controls—legal, regulatory, compliance, audit, insurance and custodial—standard in any institutional financial product. But TBR is a commercial, not a financial product and therefore not regulated by banking or securities industry authorities.
"Gold bullion is purchased or sold by TERA when the limited partner enters or exits the partnership. Investment or redemption takes place on a daily basis with 24 hour notice. Trade executions in the highly liquid gold market are at cost; TERA does not markup for commissions. TBR does not use leverage, derivatives or any other financial instruments."
TBR carries a minimum investment of $100,000.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...