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			&lt;font style="display: inline;font-weight:bold;"&gt;4. Concentration of Risk &lt;/font&gt;
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			&lt;font style="display: inline;"&gt;The Trust&amp;#x2019;s sole business activity is the investment in palladium, and substantially all the Trust&amp;#x2019;s assets are holdings of palladium which creates a concentration of risk associated with fluctuations in the price of palladium. Several factors could affect the price of palladium, including: (i) global palladium supply and demand, which is influenced by factors such as forward selling by palladium producers, purchases made by palladium producers to unwind palladium hedge positions, central bank purchases and sales, and production and cost levels in major palladium-producing countries; (ii) investors&amp;#x2019; expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that palladium will maintain its long-term value in terms of purchasing power in the future. In the event that the price of palladium declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust&amp;#x2019;s financial position and results of operations. &lt;/font&gt;
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