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World’s leading exchange traded commodities group
enters Australian market
20/12/08
- ETF Securities, the world’s leading issuer of Commodity Exchange Traded
Products led by Australian entrepreneur Graham Tuckwell, enters the
Australian investment market
- Four new exchange traded commodities (ETCs) to be listed on the Australian Securities Exchange
- Silver, platinum, palladium and a precious metal basket ETC to be available to
Australian investors for the first time
- Purchase of Gold Bullion Securities Ltd (ASX Code – GOLD)
The global pioneer in exchange traded commodities (ETCs), ETF Securities, today announced
that it intends to list a range of physically-backed, precious metal, exchange traded
commodities on the Australian Securities Exchange. This is the first time that silver, platinum,
palladium or a precious metals basket have been made available to Australian investors through
ordinary brokerage accounts.
ETF Securities has also formally completed the acquisition of the world’s first gold ETC – Gold
Bullion Securities, listed on the Australian Securities Exchange (ASX:GOLD).
The four metal securities to be listed are:
- ETFS Physical Platinum
- ETFS Physical Palladium
- ETFS Physical Silver
- ETFS Physical PM Basket
First dealings in these securities are expected to commence on the ASX in December
2008.
Commenting on the intention to list this new range of physical ETCs, Graham
Tuckwell, chairman of ETF Securities, said:
"Our decision to launch this range of precious metals is two-fold. First, it comes in the wake of
increasing global demand for precious metals through ETCs, which have seen steady growth
over the last four years to over A$38 billion. Second, we want to offer investors exposure to a
broad range of precious metals, which have historically been extremely difficult to access.
“Unlike many other commodities, precious metals are durable and easily stored, enabling ETCs
to be backed by allocated physical bars which have transparent pricing and carry no credit risk.
As a result, the new physical ETCs save investors from many of the difficulties associated with
purchasing precious metals such as access to physical bars, storage and insurance.
“ETCs provide investors with an investment vehicle that tracks the price of precious metals, not
a portfolio of equities. Uncorrelated to equities, they can provide investors with additional
portfolio diversification.
“The Australian market has always been very focused on resource equities, and investors now
will have the opportunity to get direct exposure to precious metals to complement equity
investment. These products have no credit risk as ETCs are 100% backed by allocated bullion
held in trust; this has become a very important selling point in today’s markets given the
increased focus on credit and counterparty risks.”
ETCs are designed to offer investors a simple, cost-efficient and secure way to access the
precious metals market. They provide investors with a return equivalent to movements in their
spot price less a small annual management fee, which accrues daily.
Similar to Exchange Traded Funds (ETFs), ETCs are open-ended securities, which can be created
or redeemed on demand (by market-makers) provided the relevant amount of metal is
delivered to the custodian. Investors can buy and sell ETCs through regulated brokers or
approved market makers; they can be traded in the same way as equities, including market,
limit and stop orders. They can also be shorted through stock borrowing or CFDs. The minimum
trade size is one security and settlement is T+3 (trade date plus three business days).
The management of ETF Securities created the world’s first ETC, Gold Bullion Securities, which
is listed in Australia and London and has over A$4.5 billion of assets. The new ETCs are backed
by physical allocated metal held by the custodian HSBC N.A., the world’s leading custodian for
ETCs with over A$30 billion of precious metals held for such products. All physical metals held
with the custodian must conform to the rules for good delivery of the London Bullion Market
Association (LBMA) and London Platinum Palladium Market (LPPM).
ETCs have been around since 2003, when the first one, Gold Bullion, listed on the ASX. Now
there are A$8.6 billion of ETCs. They are relatively new investment tools, which enable investors
to gain exposure to commodity prices without trading futures or taking physical delivery.
Australian Graham Tuckwell is the founder and chairman of the ETF Securities group of
companies. He is also the founder and chairman of Gold Bullion Securities Limited in Jersey and
Australia, which obtained the world's first listings of a commodity on a stock exchange.
Previously, Graham was the founder and managing director of Investor Resources Limited, a
boutique corporate advisory firm.
For further information please contact:
Financial & Corporate Relations
Kathy Tricolas
Tel:+61 2 8264 1008 or +61 412 929 191
- Notes to editors –
To obtain a copy of the prospectus please visit the website at www.goldbullion.com.au
The management of ETF Securities Limited pioneered the development of Exchange Traded
Commodities (ETCs) with the world’s first listing of an ETC, Gold Bullion Securities, in Australia
and London in 2003 and then the world’s first entire ETC platform which was listed on the
London Stock Exchange in September 2006. Since then, ETF Securities has listed its entire
range of ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each
exchange creating a separate ETC segment. ETCs listed by the management of ETF Securities
now exceed A$9 billion.
This advertisement does not constitute or form part of any offer or invitation to sell or issue, or
any solicitation of any offer to purchase or subscribe for, any transferable securities to be issued
by Gold Bullion Securities Ltd or any other securities, nor shall it or any part of it nor the fact of
its distribution form part of or be relied on in connection with any contract or investment
decision relating thereto. Any offer, invitation or solicitation shall be made solely by means of
the prospectus and recipients of this advertisement who are considering a purchase of securities
following distribution of the prospectus in connection therewith are reminded that any such
purchase should be made solely on the basis of the information contained in such prospectus
and any supplementary prospectus(es). This advertisement does not constitute any
recommendation or financial advice regarding the securities of Gold Bullion Securities Ltd.
Anyone considering making an investment in Gold Bullion Securities should consult their
financial planner and read the Prospectus in full first, as every individual’s investment objectives
and circumstances are different,. The offer for securities is only made in the prospectus dated
11 July 2008 and is available from the Company or the Company’s website:
www.goldbullion.com.au.
This press release is not being distributed to, and must not be passed on to, the general public
in Australia. The communication of this press release or any other document issued in
connection with the offer and sale of the ETCs is only being made to and directed at Australian
wholesale investors and other persons to whom it may otherwise lawfully be communicated or
otherwise lawfully be made (all such persons together being referred to as “relevant persons”).
The communication of this press release (or any other document issued in connection with the
offer and sale of the ETCs) must not be acted upon or relied upon by persons who are not
relevant persons. Persons distributing this press release must satisfy themselves that it is lawful
to do so.
This is not an offer of securities for sale in the United States. Gold Bullion Securities have not
been and will not be registered under the US Securities Act or any other applicable law of the
United States. Gold Bullion Securities are being offered and sold only outside the United States
to non-US persons in reliance on the exemption from registration provided by Regulation S of
the US Securities Act or in transactions exempt from the registration requirements of the
Securities Act. The Issuer has not been and does not intend to become registered as an
investment company under the Investment Company Act and related rules.
The World Gold Council takes no responsibility as to the contents of this document and does not
carry on activities relating to the sale of Gold Bullion Securities. Gold Bullion Securities will be
the sole obligation of Gold Bullion Securities Ltd. The World Gold Council does not provide any
guarantee in respect of Gold Bullion Securities and is not responsible or liable for Gold Bullion
Securities or any acquisition of Gold Bullion Securities in any way, unauthorised persons should
not rely on the information contained herein.
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