Frequently Asked Questions (FAQs)
Welcome to the BMG Advisors Frequently Asked Questions (FAQs). If you require more information, or if you are having problems locating an answer to a questions that you may have, please do not hesitate to contact us. Please note that ‘BMG Funds” refers to BMG BullionFund and BMG Gold BullionFund.
Where can I review the BMG Funds Documents?
Who do the BMG Funds use as their back office?
Is there a custodial agreement with the Canadian Investor Protection Fund?
Are BMG Funds available through FundSERV?
- A Class units, CDN$: BMG100 (A-FE)
- A Class units, CDN$: BMG104 (A-LL)
- A Class units, US$: BMG101 (A-FE)
- A Class units, US$: BMG105 (A-LL)
- F Class units, CDN$: BMG600
- F Class units, US$: BMG601
BMG Gold BullionFund
- A Class units, CDN$: BMG200 (A-FE)
- A Class units, CDN$: BMG204 (A-LL)
- A Class units, US$: BMG201 (A-FE)
- A Class units, US$: BMG205 (A-LL)
- F Class units, CDN$: BMG202
- F Class units, US$: BMG203
Where can I obtain performance information?
Which dealers have approved BMG Funds?
BMG Funds have also been approved for sale by major securities and mutual fund dealers, such as Yorkton Securities, Union Securities, Canaccord Securities, Dundee Securities, IPC Investment Corporation, Fundex Investments, Berkshire Securities, Assante Financial Management Ltd., Edward Jones, W.H. Stuart and, Fundtrade Financial, as well as numerous independent securities and mutual fund dealers.
In addition to securities dealers and mutual fund dealers, the bank discount brokerage divisions of The Bank of Nova Scotia, the Royal Bank of Canada, TD Bank, and Bank of Montreal, CIBC and National Bank have also been approved. BMG Funds are also available through the discount brokerage divisions of E-Trade Canada, Sun Life, ASL Direct and Northern Securities.
Which RRSP trustees have approved BMG Funds for self-directed plans?
What is the compensation structure for financial advisors?
Low Load Redemption Fees:
- First Year 3 percent,
- Second Year 2 percent,
- Third Year 1 percent,
- Third Year 1 percent,
- Thereafter 0 percent
The Class F units pay no commission and no trailer fee. The Class I units pay a negotiated commission and trailer fee.
What is the average percentage an advisor may recommend for a diversified portfolio?
From a tactical allocation standpoint, Wainwright Economics looks to gold as being a leading indicator of future inflation. In a high inflation environment, which the ongoing currency creation around the world makes likely, their conclusion is that you require15 percent in a bond portfolio and the same percentage in an equity portfolio just to insure your investments against further inflationary damage.
The percentage mix is debatable; however, to protect your client’s portfolio and preserve your client’s wealth, a 5 to 20 percent allocation to precious metals is recommended.
What is the minimum investment to participate in BMG Funds?
Is it possible to make regular monthly contributions?
DO BMG Fund units represent a specific bar of gold, silver or platinum?
Do BMG Funds offer a deferred sales charge option?
How is the price of the units of the BMG Funds determined?
Spot prices for precious metals vary during throughout the day, climbing higher or falling lower than the London PM Fix. There could also be an exchange rate differential, as that too varies throughout the day.
The prices paid for the metals are the ask prices. No one can buy at the spot price, be it the NYMEX close or the London PM Fix, in the same way that no one can buy at the last closing price in a stock. Based on this, comparing to spot is unrealistic. There is a bid/ask spread. The ask prices for each metal in a rising market are higher than spot, and lower than spot in a falling market. Here again, there is a differential between the NAV per unit that is based on the London PM Fix each day. This price does not necessarily represent the average price; it can be dramatically different from the high or the low for the day, and does not correspond to the actual prices paid by BMG Funds.
How do I set up myself and my associates to sell BMG Funds?
What is the track record of the BMG Funds management team?
BMG Funds have a fixed investment policy that, allows BMG Funds to purchase equal dollar amounts of each metal for BMG BullionFund, and to purchase gold for BMG Gold BullionFund at the prevailing market or spot price on every regular business day. BMG Funds do not rely on anyone’s ability to perform, or to make decisions that would affect BMG Funds’ investment performances. In addition, by holding actual bullion, BMG Funds unit-holders are not relying on anyone’s promise of performance. BMG Funds hold physical bullion on an allocated and *insured basis.
*”Insured basis” refers to certain insurance covering the storage of the physical bullion with the BMG Funds’ Custodian, and does not refer to insurance related to a loss in market value of the underlying holdings.
Have more questions?
Contact us or call us at 1 888-474-1001 (toll free) or 416 474-1001. BMG representatives are available to speak to you from 8:00am to 6:00pm EST, Monday to Friday.