Gränsmarknaderna utvecklas bättre än den industrialiserade världen
Medan den amerikanska aktiemarknaden har gått relativt bra under 2017 så är det ändå inget emot hur gränsmarknaderna, så kallade frontier markets har lyckats. Gränsmarknaderna utvecklas bättre än den industrialiserade världen, något som gör att de som äger aktier eller börshandlade fonder som investerar i gränsmarknader, har kunnat glädja sig.
Year-to-date, har iShares MSCI Frontier 100 ETF (NYSEArca: FM) ökat med 11,8 %, Guggenheim Frontier Markets ETF (NYSEArca: FRN) med 7,5 % och Global X Next Emerging & Frontier ETF (NYSEArca: EMFM) har stigit med 6,2 %. Samtidigt S & P 500 Index är upp med 3,45 % och MSCI All Country World Index ex USA var 4,58% hittills i år.
Frontier markets, eller gränsmarknader som de ofta kallas för på svenska, är mindre avancerade kapitalmarknader i utvecklingsländer. Dessa länders aktiemarknader är ofta mindre etablerade än dem i tillväxtekonomierna och den industrialiserade världen. Av den aneldningen är aktierna som handlas på dessa börser mer riskfyllda än de som handlas på andra börser och de är inget för den riskaverta placeraren med svagt hjärta. Gräns marknaderna kännetecknas av hög volatilitet och är mer illikvida än mer utvecklade marknader. Investerare kan också brottas med politisk instabilitet och andra risker.
Dessa länder har en stor och växande befolkning vilket kan översättas till stor tillväxtpotential. Dessa ekonomier kan bli morgondagens BRIC-länder det vill säga kommande Brasilien, Ryssland, Indien och Kina.
Enligt Världsbanken förväntas måga av gränsekonomierna, med undantag av Saudiarabien, ha en snabbare tillväxttakt än emerging markets under 2017. En snabbare tillväxttakt borde gynna dessa länders aktiemarknader och MSCI Frontier Markets Index har konsekvent överträffat MSCI Emerging Markets Index under de senaste tre åren till slutet av 2016.
Vidare är inte gränsmarknadsekonomierna lika starkt kopplade till varandra som emerging markets och de utvecklade ekonomierna som dessutom är starkade knutna till den globala ekonomin. MSCI Frontier Market Index har uppvisat en låg korrelation till både MSCI Emerging Markets Index och MSCI World Index. På grund av sin mer isolerade karaktär, kan gränsmarknader vara mer volatila, men isoleringen ger en grad av elasticitet i perioder av ökad global osäkerhet, vilket ytterligare kan hjälpa dessa ekonomier undvika stormen från president Donald Trumps protektionistiska politik i USA.
iShares MSCI Frontier 100 ETF ger exponering mot de 100 största aktierna i gränsekonomierna, bland annat företag som National Bank of Kuwait 6.5%, Kuwait Finance House 5.1% och Viet Nam Dairy Products 4.1%. FM har en hög exponering mot Kuwait 22.5 procent. Övriga stora länder i denna börshandlade fond är Argentina17,1%, Pakistan11,1%, Vietnam7,8%, Marocko 6,7%, Nigeria 4,9%, Rumänien 4,6%, Kenya 4,5%, Bangladesh 4,1% och Oman 3,8%. Denna ETF debiterar sina kunder en förvaltningskostnad om 0,79 procent.
Guggenheim Frontier Markets ETF ger en mer differentierad allokering mot olika gränsmarknaderna, till exempel Argentina 14,5%, Kuwait 14,3%, Vietnam 10,2%, Pakistan 9,8%, Nigeria8,9%, Kenya 7,7%, Marocko7,0%, Oman 6,9%, Rumänien 6,6% och Panama 4,5%. Nackdelen med FRN är att den investerar i färre företag än iShares MSCI Frontier 100 ETF, denna börshandlade fond äger endast aktier i 71 företag. Förvaltningskostnaden ligger på 0,7 procent.
Slutligen finns Global X Next Emerging & Frontier ETF som antagligen är den mest diversifierade av de börshandlade fonder som investerar på frontier markets och äger aktier i inte mindre än 203 företag. Denna ETF har emellertid en mycket hög exponering mot länder utanför de huvudsakliga BRICsekonomierna, Sydkorea och Taiwan svarar för en allokering om 26,4 procent. Förvaltningskostnaden ligger på 0,58 procent.
Thailändska aktier kan fortsätta att stiga under 2017
iShares MSCI Thailand Capped ETF (NYSEArca: THD) har utmärkt sig bland de landspecifika börshandlade fonderna under 2016. Under detta år rapporterade denna börshandlade fond en värdeökning om 33 procent mätt i dollar, och betydligt mer för de svenska investerarna som kunde dra ytterligare fördel av uppgången för den amerikanska dollarn. THD har fortsatt leverera under 2017, under januari 2017 ökade värdet med 3,6 procent och det finns flera analytiker som tror att thailändska aktier kan fortsätta att stiga.
Vissa observatörer tror att Thailands ekonomi domineras av fortfarande utbredd politisk instabilitet, särskilt efter det att militären tog kontroll förra året. Historiskt sett har Thailands ekonomi och inkomster expanderade snabbare och varit mer stabila under de tre perioder som militären ledde regeringen, jämfört med de nio civila perioder.
De thailändska aktierna kan också komma att gynnas av att landets socialförsäkringskontor börjar investera på aktiemarknaden. THD har en övervikt av handel, telekommunikation och hälsovårdsföretag som är mindre påverkade av energipriser och långsammare global tillväxt.
För två år sedan röstade det thailändska parlamentet att avsätta den förre premiärministern Yingluck Shinawatra och gick vidare med åtal mot Shinawatra för dennes roll i en risskandal.
Starka och konsekventa kapitalflöden
Den långsiktiga ekonomiska trenden är hälsosam med starka och konsekventa kapitalflöden. Detta tyder på att internationella företag anser att Thailand är ett säkert land att investera i för en framtida avkastning. Det finns en del återkommande utflöden, men historiskt sett är detta mer ett undantag.
En stark valuta är en del av tjusningen med Thailand, en viktig faktor för den som överväger att investera i Thailandeftersom THD inte är en valutasäkrad ETF. THD handlas i dollar, vilket betyder att det leder till en valutarisk, och att en investerare önskar se en bath som stärks mot den amerikanska dollarn.
Den thailändska bahten är Goldman Sachs favoritvaluta i tillväxtländerna i Asien på grund av landets starka bytesbalans. Goldman bedömer att Thailand kan rapportera ett bytesbalansöverskott på 8,8 % av BNP i år.
Crude oil ETP inflows surged to US$38mn despite expectations of rising oil supply capping further price recovery. Oil prices traded in a volatile range last week as they gained support from the weaker dollar and optimism linked to the implementation of Trump’s policies to support the oil and gas industry. However rising crude oil stocks point to further downside. According to Baker Hughes, the oil rig count posted its steepest weekly increase since April 2013 last week as higher oil prices make it lucrative to drill for shale oil in the US again. While OPEC and some non-OPEC countries have made a strong start to implementing production cuts, rising US oil supply threatens to cap further upside among oil prices.
Outflows of US$80mn from gold ETPs, were the highest this year and have reversed four consecutive weeks of inflows. Gold prices came under pressure last week declining -1.3% owing to the strengthening US dollar, the Trump propelled equity rally and rising US bond yields. The Dow Jones Industrial Average index exceeded the much anticipated 20,000 point mark for the first time ever and the S&P 500 index made new highs. The on-going US corporate earnings season is showing signs of strength as 34% of companies reported an average earnings growth 4.4% aiding the equity rally. Increasing risk appetite is distracting investors’ attention from risks of the extreme protectionist stance evident from the first official acts of the recently inaugurated US President Trump such as the signing of the Trans Pacific Partnership (TPP). In this week’s Federal Open Market Committee Meeting (FOMC), the Fed is likely to remain in wait and watch mode and we don’t expect it to have a significant impact on gold prices.
Inflows into diversified basket ETPs worth US$14.5mn have been on the rise for six consecutive weeks in a row as investors seek to benefit from the rise in commodities by diversifying their exposure in broad baskets.
Inflows into global equity ETPs continue to garner momentum led by gold mining and robotic stocks. Owing to record high valuations in global equity markets, investors are being selective and investing in thematic baskets such as gold mining and robotics. Inflows into global equity ETPs totalled US$6.6mn.
Industrial metal ETP inflows rise for the eighth week in a row, led by inflows into broad baskets and copper amounting to US$5.8mn and US$3.9mn. According to the international copper study group (ICSG) the supply deficit in the copper market has been eradicated owing to significant production expansion in China, we expect to see a near term pull back in prices.
For more information contact
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com
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De börshandlade fonder som investerar i regionala banker, till exempel SPDR S & P Regional Banking ETF (NYSEArca: KRE), har rusat under de senaste månaderna. KRE har levererat en kursuppgång på närmare 30 procent under det senaste kvartalet, och många ställer sig frågan om de regionala bankerna hålla tillväxttakten? Många investerare har nu blivit försiktiga och valt att sälja av delar av sina innehav.
En stor del av kursuppgången för de regionala bankerna i USA beror på Federal Reserve och marknadsräntorna. Med en allt brantare avkastningskurva eller större spridning mellan kort- och långsiktiga statspapper kan bankerna förbättra nettoräntemarginalerna det vill säga få en eller förbättrad lönsamhet eftersom dessa företag lånar kort och ger långfristiga lån . Dessutom har FED aviserat att banken har för avsikt att höja styrräntan inte mindre än tre gånger under 2017, något som kan få stora effekter på kursutvecklingen för en ETF som KRE.
Högre räntor skulle hjälpa öka skillnaden mellan vad bankerna tar ut på sina beviljade lån och vad de betalar på inlåning, vilket skulle öka resultatet för den finansiella sektorn. Regionala banker är bland de aktier som mest positivt korrelerade till stigande räntor eftersom högre utlåningsräntor förbättrar deras räntemarginaler. KRE är antagligen den börshandlade fond som erbjuder placerarna den största korrelationen med stigande räntor på statsobligationer.
Dyrt baserat på historiken men inte baserat på dagens förutsättningar
Goldman Sachs Ryan Nash säger att baserat på historiska siffror så ser aktierna i den amerikanska banksektorn dyra ut, men stigande räntor och mindre reglering skapar en miljö där bankernas normaliserade resultat väntas öka marknadsvärdet, något som i sin tur skulle kunna bidra till att kurserna på bankaktierna skulle kunna uppvärderas mellan 15 och 25 procent.
Bankaktierna är emellertid känsliga för politiska faktorer. Donald Trump angav innan han tillträdde som president att han har för avsikt att arbeta med att avveckla Dodd-Frank Act, som undertecknades av president Barack Obama 2010 för att undanröja hoten om en framtida finansiell härdsmälta. Lagen ökade bankernas finansiella kostnader för att skydda sig mot en framtida default, och tvingande många finansiella institut att kraftigt dra ned på exponeringen mot mer riskfyllda tillgångar vilket även syns på den nedersta raden i deras balansräkningar.
Om den nuvarande regeringen inte väljer att dra tillbaka sitt löfte om att avveckla Dodd-Frank Act kan de mindre bankerna dra fördel av en snabbare återhämtning. Goldman Sachs favoriter bland de regionala bankerna inkluderar till exempel Comerica (NYSE: CMA), Regioner Financial (NYSE: RF) och Zions Bancorp (NASDAQ: ZION).
First inflows into crude oil ETPs since November 2016 as investors encouraged by Saudi Arabia adhering to quota. There were US$44.2mn of inflows into long crude oil ETPs last week as oil prices regained losses earlier in the week. Statements by the Saudi Arabian Energy Minister al-Falih indicate that the country has cut production by more than necessary to meet its quota and could reduce production further next month. However, we caution that domestic consumption falls in the winter and so the level of exports from Saudi Arabia may remain the same. With WTI oil price above US$50/bbl since the beginning of December 2016, both production and exports in the US have surged. US production of oil was 2.9% higher in the first week of January compared to the first week of December.
Gold ETPs see third consecutive week of inflows. Inflows of US$22.3mn indicate that investors are combining their bullish cyclical positions with strategic hedges. Despite the equity and cyclical commodity rally in the first two weeks of the year, there is reason for investors to remain cautious. The ‘Trump Rally’ could be fleeting. Although many of the President Elect’s policies appear pro-growth, there is little detail on how they will be implemented. The risk of disappointment is high. The US Dollar (DXY) has lost about 2% while gold has gained close to 5% year-to-date as the vagueness of Trump’s policies has unsettled some investors.
Profit taking in palladium ETPs see an outflow of US$117.7mn.Palladiumhas had a very strong start to the year – gaining close to 11% – which has erased most of the losses the metal sustained in December. Johnson Matthey expect mine supplies to remain flat this year while demand – primarily from the auto sector – will grow. As a result palladium will likely be in the sixth consecutive year of a supply deficit.
Industrial metals rally drives largest inflow into broad metal baskets since November 2016. A combination of a weaker US dollar (in which most commodities are priced) and strong Chinese commodity import data led metal prices to continue to rally last week. Investors bought US$23.3mn of industrial metal basket ETPs and a further US$10mn in individual industrial metal ETPs last week. The market has largely brushed off the lack of detail behind Trump’s infrastructure spending plans and the relaxation of some of Indonesia’s ore export ban.
Investors increase positions in short European equities by the most since September 2015. Inflows of US$5.0mn into short DAXETPs and US$7.8mn into short FTSE100 ETPs shows that some investors are increasing contrarian positions following the strong equity rally. Meanwhile, the growing relevance of automation in a world where demographic aging and access to low cost migrant workers could become more difficult has led to rising investor interest in robotic equities. Last week’s inflows of US$10.2mn was the highest since October and marks the 18th consecutive week of inflows in ETFs capturing this theme.
Video Presentation
Nitesh Shah, Director, Commodity Research at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.
For more information contact
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com
Important Information
General
Important Information
General
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (the ”FCA”).
This communication is only targeted at qualified or professional investors.
The products discussed in this communication are issued by ETFS Commodity Securities Limited (”CSL”), ETFS Hedged Commodity Securities Limited (”HCSL”), ETFS Hedged Metal Securities Limited (”HMSL”), Swiss Commodity Securities Limited (”SCSL”), ETFS Foreign Exchange Limited (”FXL”), ETFS Metal Securities Limited (”MSL”), ETFS Oil Securities Limited (”OSL”), ETFS Equity Securities Limited (”ESL”), Gold Bullion Securities Limited (”GBS” and, together with CSL, HCSL, HMSL, SCSL, FXL, MSL, OSL and ESL, the ”Issuers”) and GO UCITS ETF Solutions Plc (the ”Company ”). Each Issuer (apart from SCSL) is regulated by the Jersey Financial Services Commission. The Company is an open-ended investment company with variable capital having segregated liability between its sub-funds (each a ”Fund”) and is organised under the laws of Ireland. The Company is regulated, and has been authorised as a UCITS by the Central Bank of Ireland (the ”Financial Regulator”) pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2003 (as amended).
Italy: When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.
Switzerland: In Switzerland, this communication is only intended for Regulated Qualified Investors.
US: This communication is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof, where none of the Issuers, the Company or any securities issued by them are authorised or registered for distribution and where no prospectus for any of the Issuers or the Company has been filed with any securities commission or regulatory authority. Neither this communication nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States. Neither the Issuers, the Company nor any securities issued by them have been or will be registered under the United States Securities Act of 1933 or the Investment Company Act of 1940 or qualified under any applicable state securities statutes.
This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. 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.
Any historical performance included in this communication may be based on back testing. Back tested performance is purely hypothetical and is provided in this communication solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Historical performance is not an indication of or a guide to future performance.
The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchaser or sale would be unlawful under the securities law of such jurisdiction. This communication should not be used as the basis for any investment decision.
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.
Risk Warnings
Securities issued by the Issuers and the Company may be structured products involving a significant degree of risk and may not be suitable for all types of investor. This communication is aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant Issuer or the Company which includes, inter alia, information on certain risks associated with an investment. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may be priced in US Dollars, Euros, or Sterling, and the value of the investment in other currencies will be affected by exchange rate movements. Investments in the securities of the Issuers or the shares of the Company which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor.
Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuers and the Company.
The relevant prospectus for each Issuer and the Company may be obtained from www.etfsecurities.com. Please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.
Issuers
General: The FCA has delivered to the regulators listed below certificates of approval attesting that the prospectuses of the Issuers indicated have been drawn up in accordance with Directive 2003/71/EC.
For Dutch, French, German and Italian Investors: The prospectuses (and any supplements thereto) for each of the Issuers (apart from SCSL) have been passported from the United Kingdom into France, Germany, Italy and the Netherlands and have been filed with the l’Autorité des Marchés Financiers (AMF) in France, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany, CONSOB and the Bank of Italy in Italy and the Authority Financial Markets (Autoriteit Financiële Markten) in the Netherlands. Copies of prospectuses (and any supplements thereto) and related regulatory documentation, including annual reports, can be obtained in France from HSBC France, 103, Avenue des Champs Elysées, 75008 Paris, in Germany from HSBC Trinkhaus & Burkhardt, AG, Konsortialgeschäft, Königsalle 21/23, 40212 Dusseldorf and in the Netherlands from Fortis Bank (Nederland) N.V., Rokin 55, 1012 KK Amsterdam. The prospectuses (and any supplements thereto) for each of the Issuers (apart from SCSL) may be distributed to investors in France, Germany, Italy and the Netherlands.
This communication is not a financial analysis pursuant to Section 34b of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) and consequently does not meet all legal requirements to warrant the objectivity of a financial analysis and is also not subject to the ban on trading prior to the publication of a financial analysis.
This communication is not addressed to or intended directly or indirectly, to (a) any persons who do not qualify as qualified investors (gekwalificeerde beleggers) within the meaning of section 1:1 of the Dutch Financial Supervision Act as amended from time to time; and/or (b) in circumstances where other exemptions or dispensations from the prohibition the Dutch Financial Supervision Act or the Exemption Regulation of the Act on Financial Supervision apply.
None of the Issuers is required to have a license pursuant to the Dutch Financial Supervision Act as it is exempt from any licensing requirements and is not regulated by the Netherlands Authority for the Financial Markets and consequently no prudential and conduct of business supervision will be exercised.
For Austrian, Danish, Finnish, Portuguese, Spanish and Swedish Investors: The prospectuses (and any supplements thereto) for each of CSL, HCSL, HMSL, MSL, ESL and FXL have been passported from the United Kingdom into Austria, Denmark, Finland, Portugal, Spain, Sweden and have been filed with Österreichische Finanzmarktaufsicht (Austrian Financial Market Authority) in Austria, Finanstilsynet (Financial Supervisory Authority) in Denmark, Finanssivalvonta (Finnish Financial Supervisory Authority) in Finland, Comissão do Mercado de Valores Mobiliários (Portuguese Securities Market Commission) in Portugal, Comisión Nacional del Mercado de Valores (Securities Market Commission) in Spain and the Finansinspektionen (Financial Supervisory Authority) in Sweden. The prospectuses (and any supplements thereto) for these entities may be distributed to investors in Austria, Finland, Portugal, Spain, Denmark and Sweden.
For Belgian Investors: The prospectuses (and any supplements thereto) for GBS, CSL, MSL and FXL have been passported from the United Kingdom into Belgium and has been filed with the Commission Bancair, Financiére et des Assurances in Belgium. The prospectuses (and any supplements thereto) for GBS, CSL, MSL and FXL may be distributed to investors in Belgium.
For Swiss investors: The prospectus (and any supplements thereto) for SCSL may be distributed to investors in Switzerland. Securities in SCSL are not shares or units in collective investment schemes within the meaning of CISA. They have not been approved by the Swiss Financial Market Supervisory Authority (FINMA) and are not subject to its supervision. The Swiss Franc Currency-Hedged Commodity Securities are not issued or guaranteed by a supervised financial intermediary within the meaning of CISA.
This document does not constitute a prospectus under the Companies (Jersey) Law 1991 and is not an offer or an invitation to acquire securities in SCSL. This document does not constitute a Swiss listing prospectus under the SIX Listing Rules and the SIX Additional Rules for the listing of Exchange Traded Products. This document must be read in conjunction with the Swiss Listing Prospectus. If there is any inconsistency between this document and the Swiss Listing Prospectus, the Swiss Listing Prospectus shall prevail. Detailed information on the terms and conditions of the Swiss Franc Currency-Hedged Commodity Securities can be found in the Swiss Listing Prospectus under Part 6 – Trust Instrument and Swiss Franc Currency-Hedged Commodity Securities.
Other than as set out above investors may contact ETFS UK at +44 (0)20 7448 4330 or at info@etfsecurities.com to obtain copies of prospectuses and related regulatory documentation, including annual reports. Other than as separately indicated, this communication is being made on a ”private placement” basis and is intended solely for the professional / institutional recipient to which it is delivered.
Securities issued by the Issuers are direct, limited recourse obligations of the relevant Issuer alone and are not obligations of or guaranteed by any of UBS AG (”UBS”), Merrill Lynch Commodities Inc. (”MLCI”), Merrill Lynch International (”MLI”), Bank of America Corporation (”BAC”), Bloomberg Finance LP (”Bloomberg”), Société Générale (”SG ”), Shell Trading Switzerland, Shell Treasury, HSBC Bank plc, JP Morgan Chase Bank, N.A., Morgan Stanley & Co International plc, Morgan Stanley & Co. Incorporated or any of their affiliates or anyone else or any of their affiliates. Each of UBS, MLCI, MLI, BAC, Bloomberg, SG, Shell Trading Switzerland, Shell Treasury, HSBC Bank plc, JP Morgan Chase Bank, N.A., Morgan Stanley & Co International plc and Morgan Stanley & Co. Incorporated disclaims all and any liability whether arising in tort, contract or otherwise (save as referred to above) which it might have in respect of this communication or its contents otherwise arising in connection herewith.
Funds
Austria: Investors should base their investment decision only on the relevant prospectus of the Company, the Key Investor Information Document, any supplements or addenda thereto, the latest annual reports and semi-annual reports and the memorandum of incorporation and the articles of association, which can be obtained free of charge upon request at the Paying and Information Agent in Austria, Erste Bank der oesterreichischen Sparkassen AG, Graben 21, A1010 Wien, Österreich and on www.etfsecurities.com.
France: Any subscription for shares of the Funds will be made on the basis of the terms of the prospectus, the simplified prospectus and any supplements or addenda thereto. The Company is a UCITS governed by Irish legislation and approved by the Financial Regulator as UCITS compliant with European regulations although may not have to comply with the same rules as those applicable to a similar product approved in France. Certain of the Funds have been registered for marketing in France by the Authority Financial Markets (Autorité des Marchés Financiers) and may be distributed to investors in France. Copies of all documents (i.e. the prospectus (including any supplements or addenda thereto, the Key Investor Information Document, the latest annual reports and the memorandum of incorporation and articles of association) are available in France, free of charge, at the French Centralizing Agent, Société Générale, Securities Services, at 1-5 rue du Débarcadère, 92700 Colombes – France. Germany: The offering of the Shares of the Fund has been notified to the German Financial Services Supervisory Authority (BaFin) in accordance with section 310 of the German Investment Code (KAGB). Copies of all documents (i.e. the Key Investor Information Document (in the German language), the prospectus, any supplements or addenda thereto, the latest annual reports and semi-annual reports and the memorandum of incorporation and the articles of association) can be obtained free of charge upon request at the Paying and Information Agent in Germany, HSBC Trinkaus & Burkhardt AG, Königsallee 21-23, 40212 Düsseldorf and on www.etfsecurities.com. The current offering and redemption prices as well as the net asset value and possible notifications of the investors can also be requested free of charge at the same address. In Germany the Shares will be settled as co-owner shares in a Global Bearer certificate issued by Clearstream Banking AG. This type of settlement only occurs in Germany because there is no direct link between the English and German clearing and settlement systems CREST and Clearstream. For this reason the ISIN used for trading of the Shares in Germany differs from the ISIN used in other countries.
Netherlands: Each Fund has been registered with the Netherlands Authority for the Financial Markets following the UCITS passport-procedure pursuant to section 2:72 of the Dutch Financial Supervision Act.
United Kingdom: Each Fund is a recognised scheme under section 264 of the Financial Services and Markets Act 2000 and so the prospectus may be distributed to investors in the United Kingdom. Copies of all documents (i.e. the Key Investor Information Document, the prospectus, any supplements or addenda thereto, the latest annual reports and semi-annual reports and the memorandum of incorporation and the articles of association) are available in the United Kingdom from www.etfsecurities.com.
None of the index providers of the Funds referred to herein nor their licensors make any warranty or representation whatsoever either as to the results obtained from use of the relevant indices and/or the figures at which such indices stand at any particular day or otherwise. None of the index providers shall be liable to any person for any errors or significant delays in the relevant indices nor shall be under any obligation to advise any person of any error or significant delay therein.
