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To: mishedlo who wrote (256486)	8/19/2003 1:42:18 AM
From: ild	Read Replies (1) \| Respond to of 436258

Gold Bullion fund to list on LSE By Kevin Morrison in London Published: August 17 2003 21:49 \| Last Updated: August 17 2003 21:49 The World Gold Council is expected to file plans for its proposed listing of an investment fund called Gold Bullion plc on the London Stock Exchange as early as this week. The fund will allow investors to buy a direct interest in bullion bars without having to worry about taking delivery, storing, insuring or transporting them. The gold will be stored in the vaults of HSBC in London. If the listing goes ahead, shares in Gold Bullion could be trading in London next month, making it the first of many gold-backed exchange-traded funds the council plans to list on key stock exchanges around the world. The council had initially hoped to list another gold-backed exchange-traded fund called Equity Gold Trust on the New York stock exchange before launches on other exchanges. But the US plans have stalled since the council's May filing with the Securities and Exchange Commission because of regulatory and legal issues. It is understood the council is involved in a legal tussle with the Bank of New York, which the council had originally appointed to work on the listing of Equity Gold Trust. Neither the council or the Bank of New York would comment. It is understood the council is forming a management company, Gold Bullion Holdings, to run the London fund. The council will hold two-thirds of Gold Bullion Holdings and one-third w ill be owned by Investor Resources, a company owned by Graham Tuckwell, executive chairman of Gold Bullion Limited, an Australian-listed gold-backed fund. Gold Bullion Holdings will also become the management company for the proposed gold-backed funds to be listed on exchanges including Tokyo, Johannesburg, Toronto, Hong Kong and Singap ore over the next 12 to 18 months. The involvement of Mr Tuckwell follows more than 12 months of work between the council and the Australian businessman. The council helped launch Gold Bullion Ltd's listing on the Aust ralian Stock Exchange, and Mr Tuckwell has worked extensively on the council's gold-backed fund plans. Mr Tuckwell and Simon Village, the council's managing director for investment services, will become joint managing directors of Gold Bullion Holdings. The council hopes the fund will increase demand for gold by making it easier and cheaper for people to invest in it. The metal's price has rallied in the last two years, partly because of its appeal as a safe haven investment in times of geopolitical uncertainty. Melbourne-based Gold Bullion Ltd become the world's first listed open gold-backed fund when it went public at the end of March. Since then it has attracted sales of about 123,000 ounces. Each Gold Bullion plc trust share is expected to represent one-tenth of an ounce of gold, with the intention that each share should track the price of gold. Based on current gold prices each share should trade at about £22 ($36), based on a gold price of $360, with the cost of the transaction at 0.01 per cent. Investors currently wanting to buy bullion face transaction fees of 3 to 7 per cent, whereas buying shares in the trust will be about the same as buying shares in a company. news.ft.com