FREQUENTLY
ASKED QUESTIONS

PHYSICAL GOLD FUND (PGF) is a fully regulated, highly liquid tool to allocate a portion of an investment portfolio to physical gold. Since its founding, our team has set out to provide a straightforward, transparent, and robust option for physical gold ownership built around a regulated product providing a unique custody structure designed to increase liquidity and reduce counterparty risk.

Our team has taken extraordinary steps in PGF’s operational design to provide investors with enhanced security and protection from risks commonly found in other gold funds.

PGF is independently administrated and audited. The Fund uses only Tier 1 service providers to meet, and in some areas exceed, industry standards in areas of governance, custody, insurance, liquidity, and risk management.

Our team has an intimate understanding of the physical gold market through decades of experience and shares the same values and mentality as investors who view physical gold as insurance. We believe that PGF offers an exceptional solution to investors seeking a regulated product that employs the best practices of private allocated custody in gold ownership developed over decades of operational experience. PGF takes the hassle out of physical gold allocation by providing a one-stop solution for acquisition, governance, custody, security, insurance, and liquidation of physical gold in an approved regulated structure.

Some of the largest gold ETFs and gold fund products today lack the structural controls and safeguards PHYSICAL GOLD FUND has emplaced to shield investors and PGF’s physical gold assets from various risks.

1. PGF provides options for enhanced liquidity, bypassing “paper gold” markets as well as bullion banks, by buying and selling precious metals directly through LBMA Certified Swiss Refineries that we consider to be the core of the industry.
2. Physical gold bars held by PHYSICAL GOLD FUND are stored in vaults constructed, owned, and managed by an LBMA approved, globally recognised, top-tier private security logistics transport and vaulting company. By vaulting assets outside of bank vaults, PHYSICAL GOLD FUND reduces exposure to risks that may be experienced by gold funds holding metal in bank custody during a liquidity crisis.
3. All vaulted physical gold is insured to full market value by a Lloyds of London underwriter.
4. PHYSICAL GOLD FUND will not accept a promise of precious metals in the form of encumbered metal, unallocated bars, leases, swaps or futures contracts in lieu of actual physical metal bars.
5. Redemption in Kind: Shares of the Fund may be converted into the underlying asset and delivered almost anywhere in the world.
6. Out of the largest gold funds we have researched, PHYSICAL GOLD FUND is the only fund in the industry that has taken proactive measures against confiscation of metals by a government entity.

The refinery settlement market is one of the largest and most liquid physical precious metals markets in the world. PHYSICAL GOLD FUND provides a high level of liquidity to investors by clearing physical gold trades exclusively through some of the world’s top Good Delivery refineries. All PGF trades (acquisitions and sales of physical gold) are refinery-direct transactions, which provides PGF with robust liquidity as well as increased speed and capacity.

Our view is that in the event of a liquidity crisis, the Fund should have access to a global pool of liquidity that may not be available to funds relying solely on financial services platforms and bullion banks to clear gold sales. PGF can buy and sell at the London Gold Price without trade platform or bullion bank commissions that may otherwise increase cost to a physical gold investor.

PHYSICAL GOLD FUND’s portfolio consists entirely of unencumbered, fully allocated, investment grade (Good Delivery) physical gold bullion acquired directly from its refinery partners. All gold is acquired and held within the LBMA Good Delivery chain of integrity. This enhances liquidity and increases transaction speed upon liquidation due to the strong chain of proof of custody.

Buying and selling shares in PHYSICAL GOLD FUND (PGF) is a straightforward process and may be done directly with the Fund itself. It is possible to do this without a financial services intermediary if you so desire.^*

Please complete the downloadable questionnaire from physicalgoldfund.com/how-to-invest/ and return via email to invest@)physicalgoldfund.com.

Our team will do the heavy lifting and prepare a Subscription Agreement for your review and signature. The Subscription Agreement will be sent to you directly via email from our Fund Administrator.

You may electronically sign, or print and manually sign, the Subscription Agreement. Once signed and returned to us along with basic supporting documents, our Fund Administrator will perform a review and determine an approval for you to invest in the Fund.^*

Payment is made by a simple wire transfer, and shares in the Fund are issued to you by our Fund Administrator.^*

PHYSICAL GOLD FUND shares are also available on international clearing platforms such as FundSettle and through commonly used institutional custody platforms such as Allfunds Bank. Please contact your preferred bank or broker to determine if they have a custody agreement in place with PGF or a PGF custody platform.^*

^* Descriptions of the subscription and redemption process on this FAQ are provided as a simple summary for ease of use. All subscriptions and redemptions are subject to the terms and procedures required and described in each Fund’s respective OM/SOM. All investors in PGF agree at time of subscription that they have read and understand the respective OM/SOM for the Fund they are investing in.

Once subscribed, you will be issued a Contract Note directly from our Fund Administrator (SS&C Fund Services). You will also be able to login to the online portal for investors to review your holdings at any time.^*

All shares in PHYSICAL GOLD FUND (PGF) are registered immediately in each participant’s name and backed by fully-allocated physical gold bullion bars that meet precise, globally-recognized standards. Neither the shares or the gold that backs them form part of any other investment instrument and do not appear on any bank balance sheet. Shares are fully redeemable for cash directly from the Fund without fees or commissions.

Yes, PHYSICAL GOLD FUND provides an option for Subscription in Kind (SIK), which allows you to contribute currently-owned physical gold. This option is occasionally selected by investors with a traditional private allocated custody holding who would like to bring their physical gold ownership into an approved regulated structure. To subscribe into the Fund using gold bullion, please contact us for further details.^*

Yes, PHYSICAL GOLD FUND SP is SIPP approved; however, subscription into the Fund is at the discretion of each individual SIPP provider.

Yes. Please contact us for more details.

Yes. Please contact us for more details.

Once subscribed, you will be issued a unique username and password to gain access to our Fund Administrator’s online portal where you will be able to see the status of your holdings. In addition, you will receive a monthly statement via email.

Redemptions on shares in PHYSICAL GOLD FUND may be made as a portion of your holding or in full. Redemptions can be made in cash or for physical gold bullion (Redemption in Kind (RIK)).^*

All redemption valuations are done at the NAV (Net Asset Value) per share of the Fund. This is based on the physical gold assets of the Fund and the London PM Gold Price for each redemption window following receipt of a redemption request.^*

The redemption window for each fund is detailed in the respective Fund prospectus. A redemption may also be requested at any time outside of the standard redemption windows using an Extraordinary NAV Request.^*

Cash redemption funds are forwarded without delay to the redeemer subject to international wire clearing times. No fees or commissions are charged for cash redemptions.^*

Physical redemption requires coordination with our Fund’s precious metals agent and incurs additional fees. Please contact us for further details.^*

^* Descriptions of the subscription and redemption process on this FAQ are provided as a simple summary for ease of use. All subscriptions and redemptions are subject to the terms and procedures required and described in each Fund’s respective OM/SOM. All investors in PGF agree at time of subscription that they have read and understand the respective OM/SOM for the Fund they are investing in.

Physical Gold Fund I SP, Physical Gold Fund SP, and Physical Hard Assets Fund SPC are registered and authorized to operate in the jurisdiction of Cayman Islands through the Cayman Islands Monetary Authority (CIMA)

Physical Gold Fund I SP is registered with the U.S. Securities and Exchange Commission (SEC)

Physical Gold Fund I SP complies with the reporting requirements of FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard)

Physical Gold Fund SP is approved by the Financial Conduct Authority (FCA) in the United Kingdom under the National Private Placement Regime (NPPR) (FRN: 739437 (Physical Hard Assets SPC), Umbrella FRN 739438 (Physical Gold Fund SP).
CLASS B: PRN: 739440
CLASS I: PRN: 739441

Physical Gold Fund SP is registered in the UK with Her Majesty’s Revenue and Customs (HMRC) as a ‘Reporting Fund’

Share Class Ref No: P0189-0002– Share Class Name: Physical Gold Fund SP – Class B.
Share Class Ref No: P0189-0003 – Share Class Name: Physical Gold Fund SP – Class I.

Although Physical Gold Fund is a ‘Reporting Fund’ no results are issued to clients as there is no reportable income. Almost 100% of Physical Gold Fund’s assets is held in allocated, unencumbered gold bullion. A small percentage is kept in cash to meet operational expenses.

Shariah Compliant certified by the Shariah Supervisory Board of Amanie Advisors

Physical Gold Fund SP is listed on the Cayman Islands Stock Exchange (CSX)

Physical Gold Fund SP complies with the reporting requirements of FATCA (Foreign Account Tax
Compliance Act) and CRS (Common Reporting Standard)

The benchmark for Physical Gold Fund (PGF) (the Fund) is the LBMA Gold Price. PGF buys and sells gold each Friday at the afternoon London gold price. Because of our institutional relationships with refineries at the core of the physical gold market, PGF is able to source gold at the spot price. This allows you to invest in the most gold possible for your investment dollars without spread or commission charges.

You will be happy to know that PGF charges no fees or commissions for cash redemptions.

For Redemption in Kind, conditions, fees for bar de-bailment, and security shipment, please refer to the Supplemental Offering Memorandum or contact us for further details.

There are no additional fees or expenses. Once subscribed, clients will never be asked to pay for anything other than the stipulated annual management fee.

The value of each share is calculated weekly based on the USD value of the number of fine troy ounces held by the Fund divided by the apportioned value of each share class and the shares issued.
This value for each share will go up or down based on the USD value of a fine troy ounce of gold each Friday minus Fund expenses. (You may read about fees in the SOM/Prospectus.)

Physical Gold Fund SP (Non-US)

B Class: $50,000 USD
I Class: $5,000,000 USD

Physical Gold Fund I SP (U.S.A.)

A Class: $100,000 USD
B Class: $250,000 USD
I Class: $5,000,000 USD

Subsequent Subscriptions

There is no minimum investment for subsequent subscriptions.

PHYSICAL GOLD FUND (PGF) sources gold directly from some of the largest Good Delivery refineries. PGF’s primary refinery is located in Switzerland and is one of the “Big Five” Swiss refiners considered to be part of the core of the precious metals refining industry for the entire globe.

Physical gold is transported from the refinery to the security vault by a world-leading private security logistics company called Loomis International.

Loomis International (formerly ViaMat) is a London Bullion Market Association (LBMA) member providing accredited security transport and storage services. Loomis International (CH) AG and its subsidiaries have up to 1,000 employees with presence in Asia, South America, the Middle East, the United States, and Europe. International Services consist of three types of operations: 1) cross border transportation of cash, 2) precious metals, and 3) storage of valuables and general logistic solutions.

The gold is stored with an LBMA member specialist bullion vaulting provider in Switzerland. It is important to note that while it is still part of the good delivery chain of integrity, this is a private security vault, and the funds gold is not stored with a bank or quasi-governmental facility.

Security governance protocols in place with the vaulting provider require that any time the gold is accessed, whether it is for auditing, inspection, or to add or remove gold bars, there must be representatives of the vaulting provider, an independent Bullion Verification Auditor, and a representative of Physical Gold Fund present. During such times, each party is required to sign off that they have inspected each bar and they match the weight lists showing individual serial numbers of each bar as well as fine troy ounces. This triple signature protocol is conducted under 24-hour security camera surveillance. The information is then provided back to the Fund Administrator as well as the Independent Fund Auditor (Price Waterhouse Coopers) to confirm gold assets to three decimal places in fine troy ounce. In addition, the Fund’s physical gold undergoes a surprise inspection and audit by the Fund Auditor (Price Waterhouse Coopers) at least once per year.

All gold shipments between the refinery and the security vault, as well as gold assets held in vaults, are insured to a full 100% of its current daily market value by a Lloyds of London underwriter. All gold stored with the security vault company is also insured by a Lloyds of London underwriter. Gold held at the refinery is insured by Allianz Global Corporate & Specialty.

Unlike most other gold funds that are self-administrated or administrated by banking partners, Physical Gold Fund has gone to great expense to hire an independent administrator. Having an independent fund administrator is currently an industry best practice that all leading regulated structures employ to ensure the integrity of a fund’s assets.

Independent administrators have visibility into and governance control over the assets of the fund they administrate. They independently confirm both the quantity and value of the fund’s physical gold assets and provide statements to investors detailing the value of each investor’s holdings. The independent administrator has signatory control over the transfer of funds, so it is not possible for the management team of the fund to misappropriate cash assets while cash is in transit to purchase gold or when gold is liquidated to cash. Administrators also ensure that the terms and conditions of a fund’s offering memorandum are consistently met by the fund.

SS&C Fund Services, one of the largest and most respected fund administrators in the world, has over one trillion dollars under administration. They have been engaged by Physical Gold Fund to act as administrators to the Fund providing oversight on processes and practices thus ensuring that Physical Gold Fund always remains compliant with its prospectus and governance protocols. This gives an extra layer of transparency and peace of mind to our investors by verifying that the assets of the Fund are legitimate and well governed.

In addition to verifying the governance, financial, and gold logistical operations of the Fund, SS&C conducts KYC and AML due diligence on behalf of Physical Gold Fund on all subscriptions and redemptions to confirm that all transactions are conducted in accordance with regulations and anti-money laundering protocols.

Investing in physical gold in a way that potentially mitigates the damage done from a systemic crisis is at the heart of what Physical Gold Fund does. When our team formed the structure of the Fund, we asked ourselves several important questions including:

1. What happens to gold in a banking or liquidity crises if it’s vaulted with a bank?
2. What if a government attempts to confiscate gold?
3. How can we make sure there are no other claims to ownership of the gold the Fund is buying?
4. How can we structure the Fund in a way that mitigates damage due to geopolitical or systemic financial crisis?
5. How can we minimize the counterparty risk associated with service providers that have substantial exposure to financial crisis or liquidity crises?

The reason we asked these questions in the first place is because of our team’s many years of experience dealing with the physical gold industry and the history of risks that come with financial service providers particularly during liquidity crises.

The answers to these questions, as well as decades of operational practice in the private allocated custody industry, are what led us to develop world-leading security, custody, logistics, governance, insurance, and liquidity protocols unrivalled in today’s market place.

Unlike all other gold funds in the market, Physical Gold Fund’s gold assets are held in LBMA accredited non-bank, non-government, high security vaults. The jurisdiction of the vaults classifies the physical gold as private property versus financial assets. By vaulting its gold in this way, Physical Gold Fund has dramatically mitigated the risk other gold funds have if the entity they are vaulting with becomes insolvent or compromised by government interference.

The processes employed by Physical Gold Fund are overseen by an independent administrator. Furthermore, globally preeminent third-party service providers independently audit both the company and the vaulted gold.

Full, all-risk insurance is in place at all times during the transporting, bailment, and vaulting of the gold. In addition, out of the largest gold funds we have researched, Physical Gold Fund is the only gold fund in the world that has taken steps to proactively deal with an attempt by a government to interfere with or confiscate the Fund’s physical gold assets. Please contact us for more details.