Setting the Gold Standard
10 years since ETF Securities created the world’s
first gold Exchange Traded Product.
C E L E B R A T I N G
This brochure aims to provide investors with a better
understanding of the physical gold market and greater
insight into the structure of physical gold ETPs. Its goal
is to help investors understand key features, critical to
choosing the right gold product.
• The first part of this brochure deals with the gold market, including its
fundamental characteristics, mechanisms, and main institutional bodies.
• The second part retraces the history of gold ETPs, together with the
history and track record of ETF Securities.
• The final part provides a roadmap for identifying which gold ETP
structure is best for each investor.
ETF Securities | 3
The world gold market at a glance
05
Who holds the gold?
05
Supply and demand
06
How the over-the-counter market works
06
The london gold market
07
loco london and loco Zurich
07
How is the london fixing price determined?
08
Special focus
Vaulting and gold clearing
Allocated vs. unallocated accounts
What is a london ‘Good delivery’ bar?
09
The investment case for gold
Growth of gold ETPs
12
Gold ETPs milestones
13
About ETF Securities
The Gold Standard
14
Security
15
Transparency
15
Cost efficiency
16
liquidity
16
Physical holdings quality
17
Track record
18
due diligence checklist
04
10
12
Contents
For thousands of years, gold has been valued as a global currency, a commodity, an investment and simply an object of beauty. As financial markets developed rapidly during the 1980s and 1990s, gold receded into the background and many investors lost touch with this asset of last resort. Recent years have seen a striking increase in investor interest in gold.
Gold’s extensive appeal and functionality, including its characteristics
as an investment vehicle, are underpinned by the supply and demand
dynamics of the gold market.
ETF Securities believes that three factors set gold apart as an investment from most other commodities: it is indestructible; it is fungible; and the inventory of above-ground stocks is enormous, relative to the supply flow.
Source: GFMS, WGC, ETF Securities calculations
2001 2002 2003 2004 2005 2006 2007 200 2009 8 2010 2011 2012 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Tonnes
Investment demand for gold
Coins, bars and other retail demand ETP demand
ETF Securities | 5 Jewellery 51% Private investment 19% official sector 17% other fabrication 11% Unaccounted 2% Jewellery 43% Technology 10%
Bar and coins 29%
ETPs and similar 5%
Central Bank net purchases 12%
Mine production 63%
Recycled gold 37%
Who holds the gold?
The vast majority of the gold ever mined still exists and is estimated to total approximately 171,300 tonnes (at end-2011). The following chart shows an estimated breakdown of those stocks in 2011.Supply and demand
The following two charts show the main sources of supply and demand of gold as at 31 december 2012.World gold demand in 2012 (4,418 tonnes)
Above-ground gold stocks in 2011
World gold supply in 2012 (4,316 tonnes)
Source: GFMS
Source: GFMS, WGC, ETF Securities calculations
How the over-the-counter market works
The global trade in gold consists of over the-counter (oTC) transactions in spot, forwards, options and other derivatives, together with exchange-traded futures and options. The oTC market trades on a 24-hour per day continuous basis and accounts for most global gold trading.
Market makers, as well as others in the oTC market, trade with each other and with their clients on a principal-to principal basis. All risks and issues of credit are between the parties directly involved in the transaction. Market makers include the market-making members of the london Bullion Market Association (lBMA), the trade association that acts as the coordinator for activities conducted on behalf of its members, and other participants in the london bullion market.
The five lBMA market-making members of the gold fixing are: Barclays, deutsche Bank, HSBC, ScotiaMocatta, and Société Générale. The oTC market provides a relatively flexible market in terms of quotes, price, size, destinations for delivery and other factors. Bullion dealers customise transactions to meet clients’ requirements. The oTC market has no formal structure and no open-outcry meeting place.
The main centres of the oTC market are london, Zurich and New York. Mining
companies, central banks, manufacturers of jewellery and industrial products, together with investors and speculators, tend to transact their business through one of these market centres. Centres such as dubai and several cities in the Far East also transact substantial oTC market business, typically involving jewellery and small bars (1 kilogram or less). Bullion dealers have offices around the world and most of the world’s major bullion dealers are either members or associate members of the lBMA. of the ten market making members of the lBMA, six offer clearing services. There are a further 59 full members, plus a number of associate members around the world.
The london gold market
Thanks to london’s historical leadership in the precious metals market and unique positioning between U.S. and Asia as well as its cutting edge clearing system, most global over-the-counter gold is cleared through the london bullion market, with deals between parties throughout the world cleared and settled in london.The london Bullion Market
Association (lBMA)
www.lbma.org.uk
In addition to coordinating market activities, the lBMA acts as the principal point of contact between the market and its regulators. A primary function of the lBMA is its involvement in the promotion of refining standards by maintenance of the ‘london Good delivery lists,’ which are the lists of lBMA-accredited smelters and assayers of gold.
london ‘Good delivery’ bars meet the specifications for weight, dimensions, fineness (or purity), identifying marks (including the assay stamp of an lBMA acceptable refiner) and appearance set forth in The Good delivery Rules for Gold and Silver Bars published by the lBMA. The unit of trade in london is the fine troy ounce, whose conversion between grams is: 1,000 grams = 32.1507465 troy ounces and 1 troy ounce = 31.1034768 grams.
ETF Securities | 7
loco london and loco Zurich
The terms ‘loco london’ gold and ‘loco Zurich’ gold refer to gold physically held in london and Zurich; this is also valid for gold physically held in New York or Hong Kong. It is important to note that on the loco london market only lBMA ‘Good delivery’ bars are acceptable for delivery.
After london, the second principal centre for spot or physical gold trading is Zurich, where lBMA ‘Good delivery’ bars and other bars of different weight and purity are accepted. For eight hours a day, trading occurs simultaneously in london and Zurich – with Zurich normally opening and closing an hour earlier than london.
The loco Zurich bullion specification is close to the london bullion market, which allows for lBMA ‘Good delivery’ gold, physically located in Zurich, to be quoted loco london and vice versa; The size of the market or supply restrictions may require gold to be flown in from london to meet demand through physical loco swaps or inventories swap; which may result in a price premium.
loco london
loco Zurich
Trade body lBMA No trade body
Good Delivery list lBMA only All types of bars are accepted, including lBMA
Clearing system london Bullion Clearing (electronic)
loco Zurich Clearing (telephone)
Regulators FSA & BoE Swiss National Bank
No. of clearers 6 2
No. of vault custodians 10 2
How is the london fixing
price determined?
The gold market operates 24 hours a day through trading in the Far East, Europe and North America. Twice daily, during london trading hours, there is a fix which provides reference gold prices for that day’s trading. Many long-term contracts will be priced on the basis of either the morning (AM) or afternoon (PM) london fix, and market participants will usually refer to one or the other of these prices when looking for a basis for valuations. The london fix is the most widely used benchmark for daily gold prices and is quoted by various financial information sources. Formal participation in the london fix is traditionally limited to five members, each of which is a bullion dealer and a member of the lBMA. The chairmanship now rotates annually among the five member firms. The morning session of the fix starts at 10:30 AM london time and the afternoon session starts at 3:00 PM london time. The members of the gold fixing are currently Barclays, deutsche Bank, HSBC, ScotiaMocatta and Société Générale. Any other market participant wishing to participate in the trading on the fix is required to do so through one of the five gold fixing members. The london fix is widely viewed as a full and fair representation of all market interest at the time of the fix.
Vaulting and gold
clearing
Certain members of the lBMA offer clearing services. They may use their own vaults for storage of physical metal and/or have the use of storage facilities under security with another company. The clearing members use a daily clearing system whereby those members utilise the unallocated metal they maintain between each other for the settlement of all mutual trades and third party transfers. This system is designed to avoid the security risks and costs involved in the physical movement of the metals.
Allocated vs. unallocated
accounts
Allocated accounts
An allocated account is an account held with a dealer in a customer’s name evidencing that uniquely identifiable bars of metal have been ‘allocated’ to the customer and are segregated from other metal held in the vault of that dealer. The client has full title to this metal, with the dealer holding it as custodian.
Unallocated accounts
Most metal traded in the london and Zurich markets is traded and settled in unallocated form. Bullion held in this form does not entitle the holder to specific bars of metal but gives the holder a right to require the delivery of certain amounts of metal. Subject to the terms of a client’s account agreement, a client may make exchanges between allocated and unallocated accounts (provided the client has a sufficient balance).
What is a london ‘Good
delivery’ bar?
A london ‘Good delivery’ bar is acceptable for delivery in settlement of a transaction on the loco london oTC market. Typically referred to as 400-ounce bars, a london ‘Good delivery’ bar must contain between 350 and 430 fine troy ounces of gold, with a minimum fineness (or purity) of 995 parts per 1,000 (99.5%),be of good appearance and be easy to handle and stack. The fine gold content of a gold bar is calculated by multiplying the gross weight of the bar (expressed in units of 0.025 fine troy ounces) by the fineness of the bar. A london ‘Good delivery’ bar must also bear the stamp of one of the smelters and assayers who are on the lBMA approved list together with a unique serial number and year. Unless otherwise specified, the Gold Spot Price always refers to that of a london ‘Good delivery’ bar.
Historically, the members of the london bullion market compiled lists of accredited smelters and assayers whose gold and silver bars they would accept without question, in settlement against transactions conducted between each other and with other acceptable counterparts. Every bar that comes into clearing is controlled by a clearing inspector for conformity. Such bars earned the distinction of london ‘Good delivery’ status.
The lBMA ‘Good delivery’ list is now widely recognised as representing the de facto standard for the quality of gold bars, thanks to the stringent criteria for assaying standards and bar quality that an applicant must satisfy.
ETF Securities | 9
The investment case for gold
Portfolio diversification benefits
The inclusion of gold into a portfolio provides useful diversification benefits as gold historically has a low correlation with most major asset classes, providing unique portfolio diversification benefits for long-term balanced portfolios.
2004
2005
2006
2007
2008
2009
2010
2011
2012
10Y
P
erf
or
mane ranking
1
Real Estate 38.0% Gold17.8% Real Estate 42.4% Gold31.9% 6.8%Bonds Real Estate 38.3% Gold29.2% Gold8.9% Real Estate 28.7% Gold16.9%2
Equities15.2% Real Estate 15.4% Gold23.2% Equities11.7% 4.3%Gold Equities34.6% Real Estate 20.4% Bonds7.7% Equities16.1% Real Estate 12.1%3
Bonds5.9% Equities10.8% Equities21.0% Bonds7.9% 2.1%Cash Gold25.0% Equities12.7% Cash0.2% Gold8.3% Equities8.1%4
Gold4.6% Cash2.6% Bonds4.9% Cash3.9% -42.2%Equities Bonds6.5% Bonds6.4% Real Estate -5.8% Bonds3.7% Bonds5.7%5
1.2%Cash Bonds-0.2% Cash3.8% Real Estate -7.0% Real Estate -47.7% 0.5%Cash Cash0.2% Equities-7.3% Cash0.3% Cash1.6%Equity - MSCI World, Bonds - Barclays Capital US Aggregate Bond Index, Real Estate - EPRA/NAREIT Global, Gold - Gold london PM fixing,
Cash - U.S. 3 Mth T-Bill
Sources: ETF Securities, Bloomberg
data to 31 december 2012. All returns are in USd
A hedge against inflation
and event risk
Gold has historically performed well during periods of significant monetary easing and high inflation. Gold has often performed well relative to equities and other risk assets during periods of extreme economic and financial turbulence – helping to buffer portfolio performance and provide a source of liquidity. -4 0 4 8 12 16 -50 0 50 100 150 200
Source: Bloomberg, ETF Securities
Annual % Annual %
Nov 69 Nov 75 Nov 81 Nov 87 Nov 93 Nov 99 Nov 05 Nov 12
Source: Bloomberg, ETF Securities -10% -8% -6% -4% -2% 0% 2% 4% Gold Precious Metal s All commodities Agricultur e EuroStoxx 50 Dax 30 FTSE 100 Industrial Metals Energy CAC 40 S&P 500
Gold price vs. U.S. inflation
Monthly, Annual % Change, from 30 November 1969 to 31 January 2013
Returns during S&P 500 worst 20%
Monthly data, from 31 January 2003 to 31 January 2013 Gold Spot Price
ETF Securities | 11
Source: Bloomberg, ETF Securities
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 50 100 150 200 250 300 350 400 450
Currency Hedged vs. unhedged gold returns for a Euro-based investor
Cumulative return, from 18 March 2003 to 18 March 2013
Hedged gold ETPs: Taking currency risk out
of gold investing
Currency hedged gold ETPs help remove the natural currency risk that investing in foreign markets creates. By allowing investors to hedge the currency of their assets into their home currency liabilities, an investor is able to focus full attention on the fundamental outlook for the underlying asset without worrying about the potential future currency movements.
over the past ten years, given the general weakness of the US dollar versus most major currencies, buy-and-hold investors with unhedged long gold metal positions saw lower returns compared to those with hedged positions. As the chart below shows, a buy-and-hold Euro based investor with an unhedged exposure to the dJ-UBS Gold Sub-Index (which is denominated in USd) would have seen a return of about 305%, whereas an investor in a hedged version exposure to that index would have seen a return of 340%, an outperformance of 35%.
dJ-UBS Gold Sub-Index -Returns of the unhedged USd index for a Euro based investor
dJ-UBS Gold Sub-Index -Returns of a daily Euro hedged version for a Euro based investor
The first gold ETP was created in April 2003 by ETF Securities’ management and listed on the Australian Securities Exchange (ASX). This was followed by a similar product listed on the london Stock Exchange (lSE) shortly afterwards, this time created in conjunction with the World Gold Council.
Gold ETPs have proven successful with similar products now listed on 31 exchanges throughout the world and have seen assets under management reach US $147bn (as at 31 december 2012).
Gold ETPs milestones
April 2003 – First Gold ETF: Gold Bullion Securities (ASX: Gold) launched in Australia by Graham Tuckwell.
December 2003 – Gold Bullion Securities (lSE: GBS) listed on the lSE in partnership with the World Gold Council (WGC).
November 2004 – SPdR Gold Shares listed on the NYSE in partnership with the WGC. April 2007 – ETF Securities lists ETFS Physical Gold (lSE: PHAU) in london.
September 2009 – ETF Securities lists the first gold ETF backed by physical gold held in Switzerland on the NYSE Arca.
January 2010 – Gold ETFs are traded on 13 exchanges around the world and total AUM reach over $50bn.
September 2011 – 65 Gold ETPs with more than 100 listings are traded on 18 exchanges around the world with total asset under management of over $120bn. November 2012 – ETF Securities lists the first gold ETF backed by physical gold held in london on the Stock Exchange of Hong Kong.
December 2012 – 67 Gold ETPs with more than 100 listings are traded on 31 exchanges around the world with total asset under management of over $147bn.
0 10 20 30 40 50 60 70 80 90
Apr 07 Apr 08 Apr 09 Apr 10 Apr 11 Apr 12 Source: Bloomberg, ETF Securities
Gold Global ETP Holdings (million ounces)
ETF Securities | 13
About ETF Securities
ETF Securities is one of the world’s leading, independent exchange-traded product (ETP) providers and a pioneer in commodity ETPs. our management team listed the world’s first physically-backed gold exchange-traded product in 2003. Similar products are now listed on 31 exchanges throughout the world and have seen assets under management reach US$147 billion (as at 31 december 2012). ETF Securities has 13 different products that offer different exposures to gold. In 2012 alone, investors allocated a total of US$ 2.5 billion in net new assets into the firm’s physically-backed gold products (as at 31 december 2012). Furthermore, nearly 40% of all European physical gold ETP flows were traded through ETF Securities’ products in Q4 2012 (01.10.2012 - 31.12.2012).
Today ETF Securities offers over 300 long and short commodity exposures as well as long and short currency exposures and thematic equity ETPs. As of 31 december 2012, ETF Securities managed over US$28.9 billion of investor ETP assets globally.
North America
New York Stock Exchange (NYSE Arca)
Bolsa Mexicana de Valores
Europe
London Stock Exchange (LSE) NYSE – Euronext Paris/Amsterdam Deutsche Börse
Borsa Italiana
Asia Pacific
Tokyo Stock Exchange (TSE)
Australian Securities Exchange (ASX) Hong Kong Stock Exchange (SEHK)
Security
The ETP must be 100% backed by physical bullion at all times
To act as secure investments, physically-backed ETPs need to be backed by 100% physical lBMA ‘Good delivery’ gold bullion held in an allocated account owned by the issuer.
• The account should hold physical lBMA ‘Good delivery’ bullion sufficient to cover 100% of the securities outstanding.
• Neither cash, nor certificates representing the right to receive bullion, should be a substitute for physical bullion.
• Neither the issuer, the custodian nor any other counterparty should be lending, leasing, trading or pledging as collateral bullion held in the allocated account. • Audits and bar lists should be verifiable against the lBMA ‘Good delivery’ list. • Bullion should be kept in fortified, high-security vaults specifically designed for
bullion storage.
Investors should not be exposed to any credit risk towards the issuer or the custodian or any other counterparty:
• The issuer should be a separate, bankruptcy-remote entity (all the bullion should be segregated from the issuer’s other assets and liabilities).
• Bullion should be identified as owned by the issuer and held in allocated form, and, as a result, be segregated from any other assets held by the custodian (both physically and in its books and records).
This section provides existing and potential investors with an extensive list of criteria for benchmarking whether a specific gold ETP structure is ‘best of breed’. It is important that investors understand the differences between individual gold ETPs to ensure the product they are considering investing in will intrinsically meet their investment goals. We believe that the robustness of the structures and processes that govern physically backed gold ETPs are key to selecting a vehicle that holds physical gold.
A strict due diligence process should encompass five key areas:
• Security • Transparency • Cost efficiency
• Physical holdings quality • Track record
ETF Securities | 15
Transparency
Published bullion holdings and clearly identified parties are essential
Independent counterparties
Physically-backed ETPs should have independent authorised participants, market makers and custodians. Such independence has long been a hallmark of good corporate governance for the fund management industry; this increases transparency and reduces any potential conflicts of interest.
Transparent pricing
The ratio of the security’s Net Asset Value to the london Gold PM fix should be stable (reflecting only the historical cost) and easy to calculate; this allows market makers to efficiently trade the product and provide best prices and execution to the market.
Easily understandable fee structure
Fees should be clearly identified, broken down and their impact on the Net Asset Value should be easy to calculate.
Reliable audit procedures
The issuer’s allocated account should be audited by both the custodian’s own rigorous internal audit procedures and by an independent lBMA-approved, independent bullion assayer. The Audit procedure should consist of semi-annual audits, at least one of which should be random and encompass both a physical inspection of the vault and a reconciliation of the bullion with both the custodian’s and the issuer’s records.
daily bar list
Both the issuer and investors should receive updated account statements of the bullion backing the ETPs.
• The custodian should provide the issuer with a bar list, updated daily for creations and redemptions, showing recognisable identifiers for each bar held. These generally comprise: brand name, serial number, weight and assay. These should be available to investors.
• The procedures improve transparency and provide that the product is 100% backed by london ‘Good delivery’ bars.
Cost efficiency
Product structure should be as cost efficient as possible
Multiple authorised participants (APs)
The structure should allow for multiple APs to reduce tracking error. Products with only one AP may trade at a premium as there are no independent arbitrageurs ensuring that prices remain consistent with the underlying physical gold price.
Multiple market makers (MMs)
The structure should allow for multiple MMs to provide liquidity, reduce spreads and to ensure the prices are made around NAV and not trading at a premium. Multiple market makers and APs also reduce operational risk in the event any one AP or MM is no longer able to participate in the market.
Physical delivery
For maximum security and liquidity the physical redemption should be in the form of london ‘Good delivery’ bars delivered to an allocated or unallocated lBMA account and should be within t+3 framework. Physical delivery should not be restricted or limited in quantity. Investors and/or authorised participants must be able to redeem 100% of their physical gold holdings in a single transaction.
Cash redemption
liquidity
liquidity is the measure of the tradability of a product. It is an important consideration when determining the differences between products because more liquid products will be more competitively priced. This is even more important in volatile markets when the need to enter/exit a trade at a competitive price is paramount.
All physical gold ETPs have similar access to the underlying gold so the primary market impact of creating and redeeming ETP units should be similar. However, this is not the case when one looks at secondary market liquidity.
Secondary market liquidity, especially liquidity displayed on exchange, can differ significantly between ETPs. The key measures of liquidity are the bid/offer spread, the “depth” of the order book (the number of orders) and the number of market makers.
• Bid/offer spread – The amount one must pay to purchase the product. The lower the number the better.
• orderbook depth – The size, price and number of orders within the orderbook. The higher the amount of units that can be bought (sold) at a competitive price the better.
• Market makers – Market makers compete to provide the best prices in the orderbook. Generally, the larger the number the more competitive the spread.
All of these measures combine together produce a liquid product. Market makers are drawn to products with high volumes. More market makers equal tighter spreads and more levels of order in the orderbook as they compete to provide the best price.
The same principle is valid for oTC trading. The higher the number of market makers for a product the more competitive the pricing of the product will be.
Physical holdings quality
lBMA-approved london ‘Good delivery’ bars
are paramount
Physically-backed ETPs should provide access to bullion with the security, reliability and strength of the london wholesale oTC bullion market, therefore the bullion should be held in the form of london ‘Good delivery’ bars. This is a critical point as non lBMA ‘Good delivery’ bars cannot be sold in the london oTC market.
The custodian should be a member firm of the lBMA
Custodians that trade in these markets have vaults that are internationally-recognised as meeting required standards for security and storage space.
Bullion should be lBMA ‘Good delivery’ bars
• These bars have a set number of ounces and a required fineness (purity) of 99.5%. They must bear the stamp of an lBMA-approved smelter/assayer.
• They are the only bars permitted for delivery in the london oTC market.
• Bullion held loco london is the most liquid. If held anywhere else (e.g. loco Zurich), bullion should be held with a
custodian or sub-custodian who is an lBMA member. • Holding gold bullion outside london may result in metal
trading at a premium or a discount to the london fixing price. • Creating outside london may also require a loco swap with
london; in the event of a shortage of metal, the swap price could increase dramatically.
ETF Securities | 17
Track record
Physically-backed gold ETPs are unique in the exchange traded products world; unlike all other financial products they involve the management and the custody of a physical asset: gold bullion.
It is essential that investors’ carefully study the track record of the issuer and assess whether it perfectly understands the mechanics and the need for security of the precious metals market.
Therefore it is crucial that all the participants involved in the management of the
product, such as custodian, registrar, and trustee, are independent from each other and possess a proven track record fulfilling their respective roles.
In addition, for any exchange traded product, liquidity is paramount. A competitive product should be supported by a network of liquidity providers (authorised participants and market makers), to ensure tight bid/offer spreads and an efficient creation/redemption processes. This then provides depth for the largest institutional capital flows. Products with single or limited APs should be avoided.
due diligence checklist
Yes
No
Security
100% backed by physical bullion held in an allocated accountNo lending of, or borrowing against bullion
Bankruptcy-remote issuer with segregated assets
No credit risk to the custodian
limited operational risk
No new ETPs can be issued without the prior delivery of gold to the issuer’s gold account with the custodian
Transparency
All major counterparties are independent (APs, custodian, MMs, trustee, registrar, auditors and issuer)Transparent and simple pricing
Easily understandable fee structure
Reliable audit procedures that are published, including at least one random audit of the custodian’s vault
Published bar lists with unique lBMA identifiers
Cost-efficiency
Multiple APs to ensure arbitrage opportunities and limit tracking error Multiple market makers to ensure maximum liquidity and reduce spreadsTight spreads and minimal tracking error
Physical holdings
quality
lBMA ‘Good delivery’ bars
Held with a member firm of the lBMA
Held by a Custodian who is a loco london clearer, in vaults that meet required standards for security and size
Track record
Issuer has long operating track record under different market conditions Partners are all highly experienced in their respective fieldsETF Securities | 19
This financial promotion has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) limited (“ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (“FCA”).
Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.
The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value. This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective, officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.
ETFS UK is required by the FCA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.
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The dow Jones-UBS Commodity Indices are a joint product of dJI opco, llC (“dJI opco”), a subsidiary of S&P dow Jones Indices llC, and UBS Securities llC (“UBS”), and have been licensed for use by ETF Securities limited. dow Jones® and dJ® are trademarks of dow Jones Trademark Holdings llC; UBS® is a registered trademark of UBS AG. S&P® is a registered trademark of Standard & Poor’s Financial Services llC; and these trademarks have been licensed for use by dJI opco and have been licensed for certain purposes by ETF Securities limited. Securities issued by ETF Securities limited’s affiliates based on the dow Jones-UBS Commodity Indices are not sponsored, endorsed, sold or promoted by dow Jones, UBS, dJI opco or any of their respective subsidiaries or affiliates, and none of dow Jones, UBS, dJI opco or any of their respective affiliates, makes any representation regarding the advisability of investing in such product(s).
