This communication is made by ETF Securities Marketing LLP of 6th Floor, 2 London Wall Buildings, London EC2M 5UU. Any references in the following document to ETF Securities Limited making this communication should be construed as references to ETF Securities Marketing LLP.
With effect from 1 January 2011, ETFS Management Company (Jersey) Limited has replaced ETF Securities Limited as the Product Manager of each of ETFS Commodity Securities Limited, ETFS Foreign Exchange Limited, ETFS Industrial Metal Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited and Gold Bullion Securities Limited. Any references in the following document to ETF Securities Limited shall be construed as references to ETF Securities Management Company (Jersey) Limited. ETFS Management Company (Jersey) Limited is regulated by the Jersey Financial Services Commission. ETF Securities Marketing LLP is not regulated by the Jersey Financial Services Commission.
This communication is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment. The terms and conditions applicable to investors will be set out in the relevant Prospectus.
Nothing in this communication is advice on the merits of any product or investment. Nothing in this communication constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment or other decision. You should take your own independent investment, tax and legal advice as you think fit.
This communication is directed only at persons who: (a) are outside the European Economic Area; or (b) are investment professionals falling within Article 19(5) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"), who have professional experience in matters relating to investments; or (c) are high net worth organisations falling within Article 49(2) of the FPO (broadly, companies or partnerships with net assets of £5m sterling or more and trustees of trusts with assets of £10m or more); or (d) are persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "exempt persons"). This communication must not be acted upon or relied on by persons who are not exempt persons.
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Important notice
This communication is made by ETF Securities Marketing LLP of 6th Floor, 2 London Wall Buildings, London EC2M 5UU. Any references in the following document to ETF Securities Limited making this communication should be construed as references to ETF Securities Marketing LLP. With effect from 1 January 2011, ETFX Investment Management LLP has replaced ETF Securities Limited as the Promoter of the Company. Any references in the following document to ETF Securities Limited (other than references to ETF Securities Limited making this communication) shall be construed as references to ETFX Investment Management LLP. ETFX Investment Management LLP is not regulated by the Jersey Financial Services Commission but is authorised and regulated by the United Kingdom Financial Services Authority. ETF Securities Marketing LLP is not regulated by the Jersey Financial Services Commission.
This communication is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment. The terms and conditions applicable to investors will be set out in the relevant Prospectus.
Nothing in this communication is advice on the merits of any product or investment. Nothing in this communication constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment or other decision. You should take your own independent investment, tax and legal advice as you think fit.
This communication is directed only at persons who: (a) are outside the European Economic Area; or (b) are investment professionals falling within Article 19(5) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"), who have professional experience in matters relating to investments; or (c) are high net worth organisations falling within Article 49(2) of the FPO (broadly, companies or partnerships with net assets of £5m sterling or more and trustees of trusts with assets of £10m or more); or (d) are persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "exempt persons"). This communication must not be acted upon or relied on by persons who are not exempt persons.
ETCs track commodities - not commodity companies - and enable investors to gain exposure to commodities without trading futures or taking physical delivery
Gold Bullion Securities - ETCs tracking physical gold stored in HSBC's bullion vault (first issued in 2003)
ETFS Oil Securities - ETCs tracking different oil returns (first issued in 2005)
ETFS Commodity Securities - a large range of ETCs tracking the:
Classic ETCs tracking the DJ-UBSCISM (first issued in 2006)
Forward ETCs tracking the DJ-UBSCI-F3SM (first issued in 2007)
Inverse ETCs tracking the DJ-UBSCISM (first issued in 2008)
Leveraged ETCs tracking the DJ-UBSCISM (first issued in 2008)
ETFS Metal Securities - ETCs tracking physical precious metal stored in HSBC's bullion vault (first issued in 2007)
ETFS Industrial Metal Securities Limited – ETCs tracking physical industrial metal stored at London Metal Exchange (LME) warehouses (first issued 2010)
Each of the above entities are regulated by the Jersey Financial Services Commission
Benefits of Commodity ETCs
Accurate
ETCs accurately track the underlying commodity index or individual commodity
Liquid
ETCs are open-ended securities, and therefore are not limited to on-exchange volumes
Accessible
ETCs are traded and settled on regulated stock exchanges, the same as any equity, and can be purchased and held in ordinary brokerage or custodial accounts
Simple
ETCs do not involve any of the difficulties with buying and then managing a futures position (eg. worrying about margin calls, contracts expiring and rolling positions) or in buying and storing physical commodities
Transparent
ETC pricing is based on a transparent formula with the pricing updated daily on the ETF Securities website
Guaranteed pricing
ETCs are priced using published settlement prices (rather than "best-efforts" pricing)
Flexible
Investors can go long or short ETCs, and they are lendable and marginable
Proven record
ETCs are managed by the same team which created the world's first exchange traded commodity; this team has over 7 years experience in developing commodity-backed investments
Total Return
Total Returns are not applicable to the ETFS (Physical) Industrial Metal Securities Limited and ETFS (Physical) Metal Securities. The returns on ETFS (Physical) Industrial Metal Securities Limited and ETFS (Physical) Metal Securities are based only on the Spot Return as these securities are backed by physical metal.
ETCs that provide investors with a total return on commodity indices and individual commodities (including Oil Securities and Commodity Securities) consist of the following three sources of return:
Spot return
Changes in price of the front month ("spot") futures contract
Roll return
Gain or loss from rolling long futures positions prior to expiry
Collateral return
Interest earned on the cash value of the initial investment
