Inflows into diversified commodity basket ETPs, totalling US$92.5mn surged to their highest level since May 2016. Rising volatility across global financial markets in conjunction with supportive fundamentals for most commodities favours the case for diversifying a portfolio.
Softening momentum in global manufacturing data sparked outflows from copper, aluminium and broad industrial metal basket ETPs worth US$28.9mn, US$11.1mn and US$14.8mn respectively. The decline in Chinese Purchasing Managers Index (PMI) for the manufacturing sector to its lowest level since July 2016 appears to have stoked concerns of future demand for industrial metals, coupled with weaker manufacturing PMI data across US, Europe and UK. Added to that, copper production in Chile, home to the world’s largest copper mining producer, rose 6.3% over the prior year in January providing evidence of rising copper supply. The imposition of trade tariffs by President Trump on steel and aluminium imports generated volatility across industrial metals prompting outflows from industrial metal basket and aluminium ETPs for the first time in three weeks. Nickel ETPs bucked the trend, by recording inflows of US$9.4mn owing to expectations of demand from battery technology.
Outflows from gold ETPs amounting to US$93.8mn rose for the fifth week in a row amidst a strong US dollar. In the first nine weeks of 2018, the overall trend of gold ETP flows has largely been negative. Last week marked the fifth consecutive week of gold ETP outflows as the US dollar strengthened in the aftermath of Federal Reserve chairman Jay Powell’s optimistic view of the US economy and upward trajectory of interest rates. Meanwhile, precious metal basket ETPs garnered inflows worth US$11.1mn for the fifth consecutive week.
Crude oil ETPs faced another week of outflows worth US$15.8mn. Since the start of 2018, there has only been one week of inflows into crude oil ETPs highlighting the ensuing pessimism amongst ETP investors, who have been opportunistically selling into the price rally that began around June 2017. Last week, crude oil prices came under significant pressure owing to an unexpected sharp increase in US crude oil stocks in conjunction with the firmer US dollar. Added to that, weaker manufacturing data in China, known to be the world’s largest crude oil importer, amplified risk aversion amongst investors. The drop in OPEC production to a 10-month low in February failed to counteract the bearish sentiment since it is largely attributable to temporary production shortfalls in Venezuela.
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This communication 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 (the “FCA”).
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 document 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 or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
This communication may contain independent market commentary prepared by ETFS UK based on publicly available information
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.
Agricultural basket ETPs received the largest inflows since inception, totalling US$54.7mn surpassing the previous high achieved only four weeks ago. After a lacklustre performance over the prior year with the exception of cotton, a majority of agricultural commodities are trading higher in 2018 owing to severe weather conditions. Wheat prices have been benefiting from the ongoing dry spell in key US growing areas that is hampering the development of the dormant winter wheat. While the severe dry conditions in Argentina are supporting soybean and soybean meal prices higher. Meanwhile USDA’s February World Agricultural Supply and Demand (WASDE) report, shows lower closing inventories for corn stocks, lending buoyancy to prices. Added to that the weaker US dollar is also helping the value of dollar-denominated exports in many agricultural commodities.
Inflows into industrial metal basket ETPs rebound to US$42.1mn reversing the prior week’s trend of outflows. The pronounced US dollar weakness coupled with higher than expected inflation data in the US has lent buoyancy to industrial metal prices. As metals and commodities are viewed as a hedge against inflation.
Inflows into Nickel ETPs worth US$21.4mn garner momentum, rising for the sixth week in a row. Nickel was the best performer last week amongst the industrial metals complex, with a price rise of 7.3%. The growth associated with electric vehicle batteries is expected to play a role in demand for nickel that currently only accounts for 3% of total demand. Added to that, roughly 50% of the current nickel mine supply is suitable for battery use as the low grade nickel products are inadequate for battery manufacturing, raising the need for further production as global nickel inventories have been trading lower.
Gold ETPs suffer US$103.5mn redemptions on the back of profit-taking.Gold pricesadvanced to US$1360 per troy ounce attaining an 18-month high on the back of higher than expected inflation data and weaker retail sales in the US. Outflows from platinum ETPs continue for the seventh week in a row. According to the European Automobile Manufacturers’ Association, while new car registrations in the EU rose by 7.1% year-on-year, the percentage of diesel cars as a proportion of all new cars registered declined by 33%. This is likely to weigh on platinum, known for its use in pollution abatement technologies used in diesel vehicles.
Energy basket ETPs face redemptions worth US$13.2mn. While Oil ETPs saw inflows worth US$21.8mn. In its latest update the International Energy Agency’s (IEA) predicted production increase of 1.8mn barrels per day (bpd) is likely to exceed the anticipated growth in global demand. Added to that, owing to the ongoing unscheduled outages in Venezuela, the market would appear to be largely balanced if OPEC’s current oil production at 32.3mn bpd remained constant. However when Venezuela resumes production at normal levels, the oil market will be oversupplied.
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This communication 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 (the “FCA”).
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 document 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 or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
This communication may contain independent market commentary prepared by ETFS UK based on publicly available information
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.
Gold ETPs received inflows of US$19.2mn, staging a strong start to the new year.Gold prices ended the week higher by 1% supported by a weak US dollar. While the rise in US payrolls missed estimates by a considerable margin of 42,000 workers in December, owing to a shortfall in the services sector, it is unlikely to be a significant shift in the overall trend. The US ADP employment data showed private employers added 250,000 jobs in December, marking the biggest monthly increase since March last year. The accomplishment of passing the US tax bill is also likely to benefit US corporate earnings. We continue to expect the Fed to hike in March. Moreover the December FOMC minutes released last week, highlight concerns of higher inflation expectations in 2018 stemming from wage growth. The likelihood of higher inflation should keep the Fed on track with its three rate hike projections in 2018 and is likely to be a headwind for gold prices going forward.
Global equity ETPs garnered US$21.6mn buoyed by a synchronised global growth story. Strong economic data in US, Europe and China has helped reinforce the positive sentiment helping global stock markets attain new highs. In addition, the cut in the US corporate tax rate has boosted expectations for corporate earnings that kick off this week.
Precious metal ETPs garnered strong inflows worth US$18.8mn. Palladium prices rose to US$1100 for the first time in 17 years, in continuation with last years trend. Fears of a supply shortage continue to drive palladium prices higher. However we expect to see its closely traded counterpart platinum outperform palladium, owing to its steep price discount and the strengthening European car market.
Crude oil ETPs saw outflows of US$14.1mn, extending last year’s trend of relentless outflows. Fears of political unrest in Iran disrupting oil supply coupled with OPEC’s high compliance with production cuts helped push Brent crude above US$68, its highest level since May 2015. Meanwhile positive economic data across the globe and severe cold weather conditions in the US sent WTI crude oil just shy of its 2015 high. Evident from the build-up in short positioning of crude oil ETPs, investors are increasingly becoming aware that current prices are unsustainable as the US continues to expand production and the unrest in Iran settles.
Diversified basket ETPs received US$12mn as major commodities kick start the year with a strong performance. The Bloomberg commodity spot index, known to track a broad basket of 22 major commodities, attained its highest level since 2014. The improving global growth story is benefiting the outlook for commoditiesand drawing investors into broad based diversified commodity baskets.
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This communication 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 (the “FCA”).
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 document 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 or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
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.
Investors rushed into gold ETPs as North Korea is threatening further military tests near the US seas. Last week saw US$122.5mn inflows into gold ETPs as tensions with North Korea intensify. Whilst the country has been demonstrating its military force since at least the 80’s, it has stepping up its provocations since the summer 2016 when Kim Jong-un claims that he can launch a missile capable of striking the US. Verbal provocations recently turned into military action with a North Korean missile overflying Japan on Tuesday morning. Allies have responded by another demonstration of force on Thursday as US bombers joined South Korea in a live-fire bombing exercise over South Korea. Russia and China, on the other hand, are pushing for diplomatic talks. Gold price rose by 2.6% on Tuesday, closing above US$1,318/oz., the highest level since September 2016, before ending the week at US$1,320/oz. Platinum and silver, on the other hand, recorded outflows of US$12.4mn and US$34.5mn respectively, likely on profit-taking as prices touched the highest levels since Q1 2017.
Inflows into short oil ETPs sent mix signals despite robust domestic demand for oil in the US. Hurricane Harvey which hit the US Gulf Coast damaged a third of US oil refineries, sending the price of heating oil and gasoline to the highest level since the summer 2015. The hurricane, downgraded to tropical depression, is the first category 3 to make landfall in the US since 2005. Oil prices, on the other hand, have barely moved from their current momentum. WTI fell 1.2% over the past week while Brent remains flat. Natural gas was up 6.2% over the week as the active contract rolled from September to October on Wednesday with a curve in contango. After six weeks of outflows, oil ETPs recorded US$5.8mn inflows last week, mostly into short oil ETPs, reflecting investors’ views that oil prices will remain range-bound. However, US domestic demand for oil remains strong as inventories declined more than expected last week despite production continuing to rise.
Copper ETPs recorded inflows on growing Chinese manufacturing activities in August. China manufacturing PMI surprised the market to the upside while service and non-manufacturing PMIs grew at their lowest pace in four months as construction activity slowed down. Interestingly, the Caixin manufacturing PMI, released last Friday, also confirmed a pickup in in industrial activities at 51.6 against 51 expected and 51.1 in July. While the Chinese National Bureau of Statistics data focus on large to mid-sized companies, the Caixin manufacturing PMI tracks smaller and private businesses and therefore provides an independent reading from official numbers. The price of industrial metals rose by 3.0% on average last week and 10.8% over the past month. We continue to expect Chinese data to beat expectations and support demand for metals.
Video Presentation
Edith Southammakosane, Research Analyst 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
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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).
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Gold ETPs receive largest inflows since May 2017, while silver ETPs see largest outflows since July 2016. With gold holding its gains last week, investors increased their holding of the metal by US$64.7mn. A small miss in US ISM manufacturing figures and continued political volatility in the Trump Administration following the sacking of its Communications Director lent weakness to the US Dollar and support to gold. We believe that in the absence of shocks, gold will trade around current levels until the end of the year. However, should we get any shock events, goldcould rise higher. Investors acknowledging this “hedge” trait of gold are buying into the metal as a source of portfolio insurance. Meanwhile long silver ETPs saw outflows of US$58.3mn, as its price failed to hold onto gains from the previous week. As economic growth continues, we expect that silver will outperform gold by the end of the year, which could see inflows into silver resume.
Inflows into Emerging Market government bond ETPs the highest since January 2017. Marking the third consecutive week of inflows into Emerging Market government bonds, inflows of US$18.6mn indicate that investor sentiment around emerging markets is continuing to grow. Gains in local government bonds of around 11% this year, underpin the recent increase in sentiment.
Third consecutive week of outflows from crude oil ETPs. Outflows of long US$75mn were the highest since May 2017. After the prior week’s gains in oil prices, investors continued to take-profit. By the end of the week, WTI oil had lost all its gains from the previous week. Investors continue to play a price range of US$40-55/bbl. When oil trades closer to the lower part of the range, we expect to see inflows resume. Recent price weakness comes as OPEC members are poorly conforming with their production limits. Kuwait and Russia are chairing a meeting today and tomorrow in Abu Dhabi with several OPEC and non-OPEC members participant in the deal to limit production. The spotlight will be shone on countries like Iraq, Gabon, Ecuador and UAE who are the cartel’s worst offenders.
Investors polarised on USD/EUR. Last week inflows into short USD-long EUR ETPs rose to US$6.2mn, breaking a five weeks of outflows. Meanwhile inflows into short EUR-long USD rose to US$6.3mn, marking seventh consecutive week of inflows. In aggregate there were US$14.6mn of inflows into USD ETPs. Despite recent weakness in the US Dollar and strength in the Euro, we think the broader currency market has misjudged the reticence of the ECB and that confidence in aggressive tapering in coming months misguided. We feel the recent Euro strength will fade, while tightening policy in the US will drive the US Dollar higher. Friday’s payroll report, which was considerably stronger than expected, should provide support to Dollar over the coming week, and reverse the weakness seen earlier last week.
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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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.
