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ETF Securities powers through the $2bn mark
06/11/07
- ETF Securities one of the fastest growing providers of ETF products in Europe
- ETFS Physical Gold the fastest growing gold ETF over the past four months, increasing by 1200%
- Total Assets up by 680% in 2007
The global pioneer in exchange traded commodities (ETCs), ETF Securities, has seen tremendous growth in assets under management in the last year. Assets under management have grown from $250 million at end of 2006 to over $2 billion by the end of October 2007. The speed and growth of the business has been largely due to the popularity and performance of commodities as an asset class. The creation of dedicated ETC segments across Europe, multi-currency trading has helped many investors access the asset class for the first time. The ETC product range offered by ETF Securities is the most extensive globally which has provided many different investor types to implement a broad range of strategies. As a result, ETF Securities is the fastest growing provider of ETCs in Europe.
Supporting this growth has been recruitment in all key areas including sales, product development and legal. Additionally, over 16 Market Markers and Authorised Participants provide liquidity and distribution to ETCs, making ETCs one of the most widely distributed products.
Speed to market and product development have been key to ETF Securities' success. Five European stock exchanges - London, Milan, Frankfurt, Paris, Amsterdam - have created dedicated ETC segments, resulting in increased liquidity and transparency for this rapidly growing asset class. Average ETC volumes have tripled this year to over $30 million per day, or over $7 billion on an annualised basis. Investor demand for non-correlated assets to improve portfolio diversification is flowing into alternative assets including commodities. This has led ETF Securities to create new ETCs, allowing investors to implement different investment strategies in commodities. As a result, new ETCs have recently been launched providing exposure to different commodities and different parts of commodity futures curve.
This year, new ETC segments were launched in Italy and France, while new products have been brought to all five ETC platforms. These new ETCs include the world's first entire physically-backed precious metals platform. These new physically backed ETCs provide investors exposure to the four major precious metals including gold, silver, platinum, palladium and a basket of all four. Since the end of April this platform has accumulated $620 million in assets and has grown by over 460% in the past four months alone as the markets have suffered from volatility.
More recently, ETCs offering exposure to different parts of the commodity futures curve have been listed in London. These include six new oil ETCs which track three different maturities (1 year, 2 year and 3 year) and nine new ETCs which track the Dow Jones - AIG Commodity Index 3 Month Forward IndicesSM. These are the first ETCs to offer investors the opportunity to benefit from any backwardation or contango in the futures market and are the first exchange traded products to track the new Dow Jones - AIG Commodity IndicesSM.
Most recently, the London Stock Exchange (LSE) enabled multi-currency trading of ETCs. Now investors may trade ETCs in three major currencies - US Dollars (USD), Sterling (GBX) and Euros (EUR). Ten of the most popular ETCs were listed on the new multicurrency platform in October including oil, gold, silver and agriculture.
Over the past few months, ETFS Physical Gold (PHAU) has been the most popular ETC, having accumulated $400 million of new assets in the past four months alone, an increase of 1200% making ETFS Physical Gold the fastest growing gold ETF over the period. With the launch of a total of 8 precious metal ETCs in the past 12 months, investors have traded in excess of $1 billion of these ETCs. ETFS Physical Gold (PHAU) is the first ETC tracking physical gold to be traded in Sterling and is the only physically backed ETC providing UK investors access to gold in pension accounts including tax wrappers such as SIPPs, PEPs, ISAs and CTFs.
In total, ETF Securities now has over 50 ETCs.
Commenting on today's announcement Graham Tuckwell, Chairman ETF Securities, said:
"ETF Securities are the innovators of ETCs and continue to be a world leader of ETCs. As at November 2007, ETF Securities has over 50 ETCs listed on 5 exchanges with over $2 billion in assets which shows our success in bringing a ground-breaking range of commodities to European investors for the very first time. Current growth is around $60m a week.
The speed at which our assets under management are growing says a lot about investor's appetite for simple access to commodities. Investors have responded to our products and we will continue to bring innovation to the market place to meet this demand.
"There has been a surge in global demand for natural resources and this has acted as a catalyst for our expansion in assets under management. The growth in assets confirms each exchange's commitment to ETCs with the launch of dedicated ETC platforms in each country. We now have over 50 different ETCs available on 5 of Europe's major exchanges offering a wide range of investment trading opportunities in the commodities sector for investors."
For further information, please contact:
Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4875
Notes to editors:
The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF Securities created 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 broad range of ETCs on Europe's major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment.
To learn more about ETF Securities go to: www.etfsecurities.com
The Dow Jones - AIG Commodity IndexSM(DJ-AIGCISM) and The Dow Jones - AIG Commodity 3 Month Forward IndexesSM(DJ-AIGCI-F3SM) are designed to be liquid and diversified benchmarks for the commodity futures market. They are composed of futures contracts on 19 physical commodities traded on U.S. exchanges, with the exception of aluminium, nickel and zinc, which trade on the London Metal Exchange (LME). In addition, there are nine sub-indexes, representing the major commodity sectors within the index: Energy (including petroleum and natural gas), Petroleum (including crude oil, heating oil and unleaded gasoline), Precious Metals, Industrial Metals, Grains, Livestock, Softs, Agriculture and ExEnergy.
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 Commodity 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 Commodity 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. Commodity Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. Commodity 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. The Issuer has not been and does not intend to become registered as an investment company under the Investment Company Act and related rules. Commodity Securities and any beneficial interest therein may not be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. 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 Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus. Commodity 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 Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus."
"Dow Jones," "AIG®" "Dow Jones-AIG Commodity IndexSM," "DJ-AIGCISM", "Dow Jones-AIG Commodity 3-Month Forward Index" are service marks of Dow Jones & Company, Inc. and American International Group, Inc. ("American International Group"), as the case may be, and will be licensed for use for certain purposes by ETF Securities Ltd. ETCs based on the DJ-AIGCISM or related sub-indices (including single commodity sub-indices) or 3-Month Forward Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial Products Corp. ("AIG-FP"), American International Group, or any of their respective subsidiaries or affiliates, and none of Dow Jones, AIG-FP, American International Group, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product(s).
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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