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ETF Securities creates world’s first exchange-traded precious metals platform backed by physical metal
20/04/07
- 5 new physically backed exchange traded commodities (ETCs) to be listed on the London Stock Exchange (LSE)
- Platinum, palladium and a precious metal basket ETC to be made available to ordinary investors for the first time ever
- Silver offered for the first time outside of the USA
The global pioneer in exchange traded commodities, ETF Securities, is set to bring
another world first to the London Stock Exchange with the listing of a range of
physically backed, precious metal, exchange traded commodities (ETCs).
Never before have platinum, palladium or a precious metals basket been made
available to investors through ordinary brokerage accounts; however, this is set
to change as ETF Securities intends to list these new ETCs – along with silver and
gold ETCs - on the London Stock Exchange in an innovative new listing. The
listing of the silver ETC is the first time a physical silver ETC has been available to
investors outside the United States.
The 4 separate classes of metal securities to be listed are:
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ETFS Physical Platinum |
LSE code: PHPT |
| ETFS Physical Palladium |
LSE code: PHPD |
| ETFS Physical Silver |
LSE code: PHAG |
| ETFS Physical Gold |
LSE code: PHAU |
The basket of metals to be listed is:
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ETFS Physical PM Basket |
LSE code: PHPM |
First dealings in these securities are expected to commence on the main
market of the LSE on Tuesday 24 April 2007.
The management of ETF Securities created the world’s first ETC, Gold Bullion
Securities in Australia and London which have over $2 billion of assets combined.
All of the new ETCs are backed by physical allocated metal held by the Custodian
HSBC N.A., who is the world’s leading Custodian for ETCs with over $13 billion of
precious metals being 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 are relatively new investment tools which enable investors to gain exposure
to commodity prices without trading futures or taking physical delivery. The 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, ETCs are open-ended securities which can be
created or redeemed on demand (by market-makers) provided that the relevant
amount of metal is delivered to the Custodian. Investors can buy and sell the
new ETCs through regulated brokers or approved market makers. ETCs can be
traded with all the same order types available to 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) in CREST. In addition, this is the first time that physically backed
precious metal ETCs have been eligible for UK pension accounts including PEP,
ISA, CTF and SIPP.
Commenting on the intention to list the new range of physical ETCs,
Graham Tuckwell, Chairman, said:
"Our decision to launch this range of precious metals is twofold. Firstly, it comes
in the wake of successful and increasing global demand for precious metals
through ETCs which have seen steady growth over the last four years to over
US$16 billion. Secondly, 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 the 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 and then having to store and insure those bars.
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 an additional tool for portfolio diversification.
For further information please contact:
Claire Burston / Roman Townsend
Tel: +44 (0) 20 7786 4886/4875
Penrose Financial
- Notes to editors -
To obtain a copy of the prospectus please visit the website at
www.etfsecurities.com/msl
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 US$2.8 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 ETFS
Metal Securities Limited 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 regarding the securities of ETFS Metal
Securities Limited.
The communication of this press release is not being made by, and this press release has not been
approved by, an authorised person for the purposes of section 21 of the Financial Services and
Markets Act 2000 (the “FSMA”). Accordingly this press release is not being distributed to, and must
not be passed on to, the general public in the United Kingdom. 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 those persons in the United Kingdom falling within the definition of
Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the “Order”), or high net worth entities, and other persons to
whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any
person to whom it may 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. All applicable provisions of the FSMA must be complied with in respect of anything
done in relation to the ETCs in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. Metal Securities have not been and will
not be registered under the US Securities Act or any other applicable law of the United States. Metal
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. If the Issuer determines that any Security Holder is a Prohibited US Person (being a US
Person who is not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may
redeem the Metal Securities held by that Security Holder in accordance with the provisions described
in the Prospectus. Metal Securities may not be purchased with plan assets of any "employee benefit
plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States
Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets
include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's
investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or
section 4975 of the Code or any United States Federal, state, or local law or non-United States law
that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section
4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan
Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the
Issuer may redeem the Metal Securities held by that Security Holder in accordance with the provisions
described in the Prospectus."
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