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ETF Securities announces world’s first Shariah compliant
precious metal ETC platform
5/08/08
- Sameer Meralli appointed as Head of Sales for Middle East and
North Africa (MENA)
- Shariah compliant ETC trading volume tops $2 billion in July 2008
ETF Securities, the global pioneer in exchange traded commodities (ETCs), has
announced that its physically backed precious metals platform is now Shariah
compliant. The ETCs are the first Shariah compliant ETCs globally. The ETCs
provide investors access to investments consistent with Islamic principles. The
Shariah compliance was sought in response to the rising global demand for ETCs,
in particular from the Middle East, North Africa and Asia. The Shariah compliant
ETCs are currently traded on 5 exchanges in Europe with trading volumes of
$2 billion in July. ETCs are designed to provide simple access to all investors and
with the addition of being Shariah compliant, ETCs are now even more accessible
to a wider range of investors.
The 5 physical ETCs which are Shariah compliant are:
| ETFS Physical Platinum |
LSE code: PHPT |
| ETFS Physical Palladium |
LSE code: PHPD |
| ETFS Physical Silver |
LSE code: PHAG |
| ETFS Physical Gold |
LSE code: PHAU |
| ETFS Physical PM Basket |
LSE code: PHPM |
All of the physical precious metal ETCs are backed by allocated metal – uniquely
identifiable bars which carry no bank credit risk. These precious metal bars and
ingots are held in trust in London by the Custodian HSBC Bank USA N.A., the
world’s leading Custodian for ETCs. The metal 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). Securities are only issued
once metal is confirmed as being deposited into the Company’s bullion account
with the Custodian. Consistent with allocated gold, no precious metal is
borrowed, loaned out nor does it earn any income.
Showing ETF Securities’ dedication to the rapidly expanding Middle East and
North Africa (MENA) region, ETF Securities has appointed Sameer Meralli as Head
of Sales for Middle East and North Africa. Sameer Meralli brings extensive
industry experience to his role at ETF Securities. Sameer’s analytical expertise
was honed at investment banks Goldman Sachs and Deutsche Bank while his
institutional sales experience was gained as Vice President for a private hedge
fund, and most recently, as an Executive Director of Institutional Sales at a
boutique asset management firm. Sameer also brings deep expertise in Islamic
Finance, having recently presented at the Harvard Islamic Finance Forum as an
invited speaker in the field of Islamic Finance asset management. He holds a
Masters in Islamic Law from Harvard University, a Masters in Finance from
London Business School and has also studied law at the London School of
Economics.
ETF Securities now offers more than 120 ETCs, which give investors greater
choice to implement different investment strategies with the choice of physical,
long, forward, leveraged and short exposure to a wide range of commodity
sectors. ETCs are simple to access as they are traded in three currencies (Euros,
USD and Sterling) and listed on five major European Exchanges including the
London Stock Exchange, Euronext Paris, Euronext Amsterdam, Deutsche Borse
and Borsa Italiana. Each Exchange has created unique ETC trading segments
resulting in trading volumes exploding to $4.8 billion during July.
Commenting on ETF Securities’ Shariah approval, Hector McNeil,
Managing Partner at ETF Securities, said:
“We are very pleased to be able to offer the first Shariah compliant platform of
physical precious metal ETCs in the world. This is an exciting new development
for Islamic investors to gain access to our entire physical precious metals
platform which includes Gold, Silver, Palladium and Platinum. This development
recognises the rising importance of Islamic investors and their appetite for ETCs.
“ETCs were designed to be simple and accessible tools for all types of investors.
Shariah compliance further extends the global reach of ETCs which are now
traded on 5 Exchanges in 3 currencies. The Shariah compliant ETCs have grown
to $2.6 billion in the past 14 months with trading volumes of $2 billion in July
before this exciting new development.
“To lead this exciting new development in ETCs, ETF Securities has appointed a
top class individual in Sameer Meralli for the MENA region. Sameer brings a
wealth of sales, marketing and commodities experience to the team. Sameer’s
extensive Islamic sales and product structuring will significantly strengthen the
ETF securities’ offering to MENA and Shariah compliant investors.”
For further information, please contact:
Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4875
ETF Securities continues its series of conference calls for finance
professionals:
Title: The Fundamentals of Energy Presentation
Date: 7th August
Time: 11:00am and 15:00pm London Time
Click here to register
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 ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy)
with each exchange creating a separate ETC segment. With Classic, Forward,
Short and Leveraged ETCs available, investors can execute most trading and
investment strategies previously not possible.
To learn more about ETF Securities go to: www.etfsecurities.com
This press release 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. Securities issued by Commodity
Securities Limited (“ Securities”) have not been and will not be registered under the US Securities Act
or any other applicable law of the United States. These 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. These
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 Securities held by that Security Holder in
accordance with the provisions described in the Prospectus. The 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 Securities held by that Security Holder in
accordance with the provisions described in the Prospectus relating to those Securities."
“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 subindices
(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, AIGFP,
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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