The Global Reserve Portfolio is simple and easily understood as a balanced and diversified investment, with underlying assets that represent a reasonable approximation of global investment opportunity. Performance and volatility will be moderate relative to several major asset classes, with gold as an additional stabilising element. This composition should be generally acceptable as a neutral disposition of funds.
Passive fund management fees vary widely, from around 0.15% to 1.50%. Fees above 1.00% would normally be considered uncompetitive, with the more competitive ETFs maintaining expenses of less than 0.50%. Costs in the 0.50% to 1.00% range become competitive only with a point of differentiation, such as an effective marketing strategy or an unusual investment offering. The GRP is diversified and balanced in a way that would be possible but not effortless for a sophisticated investor to assemble and manage; the single global dollar unit greatly simplifies this process. Marketing and distribution of the global dollar is clearly unique, but its main attraction will be monetary utility. A fee of just under 0.70% should be acceptable within this context.