Etikett: PHPT

China and strong USD fail to deter commodity bargain-hunters

China and strong USD fail to deter commodity bargain-huntersChina and strong USD fail to deter commodity bargain-hunters

ETF Securities Commodity ETP Weekly – China and strong USD fail to deter commodity bargain-hunters

Highlights

•    Inflows into long WTI crude and Brent oil ETPs continued for the 5th straight week.

•    Multiyear low prices attract bargain hunters to industrial metals ETPs.

•    Outflows from physically backed gold ETPs continue for the 11th consecutive week.

•    Physically backed platinum ETPs (PHPT) drew inflows of US$4.3mn while palladium ETPs saw outflows of US$7.4mn.

•    ETFS Agriculture (AIGA) received US$14.6mn of inflows last week.

Download the complete report (.pdf)

The jobs data in the US last week provided vital ammunition for the Federal Reserve to pull the trigger on interest rate increases later this year, adding to US dollar strength, which weighed on commodity prices. Interestingly gold remained resilient, seeing its price rise in US dollar terms for a second straight week, despite outflows from gold ETPs. The key to the commodity complex’s fortunes is China’s growth path and the market is on the lookout for further stimulus in the country.

Inflows into long WTI crude and Brent oil ETPs continued for the 5th straight week. WTI crude oil touched US$43.94 and Brent reached US$48.55, marking their lowest levels since 20th March and 29th January respectively this year. We believe that these low prices will provide high-cost producers the incentive to cut production, and will pave the way for price increases later in 2015. Bargain hunters have continued to accumulate positions at these depressed price levels, with long oil ETPs receiving US$88.6mn of inflows last week, the highest since March 2015.

Multiyear low prices attract bargain hunters to industrial metals ETPs. ETFS Aluminum (ALUM) and ETFS Copper ETPs (COPA) recorded US$15.5mn and US$10.7mn, their highest inflows in 12 and 18 weeks, respectively. A weaker-than-expected Chinese manufacturing purchasing managers index (PMI) reading of 50 and an unexpected decline in German industrial production (of -1.6%) pushed copper and aluminum prices to 6 year lows this week. However, China announced plans raise 1 trillion yuan in bonds to fund infrastructure projects which will likely increase the demand for industrial metals. Money manager net short positions in copper reported by the LME and Shanghai Futures Exchange have more than trebled over the past week and ETP investors are betting on a short-selling rally, should any supply side outages eventuate from weather related Chilean mine disruptions.

Outflows from physically backed gold ETPs continue for the 11th consecutive week. After the second consecutive week of price gains, outflows from physical gold ETPs slowed to US$41.1mn, the lowest in five weeks. The probability of a Fed rate hike in September rose to 56% following the sturdy US jobs data release. Gold however shrugged off the news and rose. Slowing outflows and steadying prices could mark the end of the gold rout, with Q3 a seasonally robust period for gold historically.

Physically backed platinum ETPs (PHPT) drew inflows of US$4.3mn while palladium ETPs saw outflows of US$7.4mn. BMW AG cut production last week amid weak auto demand in China. Approximately 70% of palladium demand comes from the autocatalyst market. Platinum has more diverse sources of demand, which helps explain why investors appear more optimistic about its outlook.

ETFS Agriculture (AIGA) received US$14.6mn of inflows last week. When combined with the previous week’s US$19.8mn of inflows, we saw the highest fortnightly inflows in to the agricultural basket since October 2014. With a strengthening El Niño potentially disrupting global crop production this year, we are could see sharp gains in agricultural prices as supply falls short of expectations.

Key events to watch this week. Industrial production data in the US, China and Japan will provide a gauge for industrial metal demand, while US retail sales and weekly jobs figures will help provide clarity on the US dollar’s strength.

Video Presentation

Aneeka Gupta, 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

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.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

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 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 document 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 document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document 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. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”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

Any products referenced in this document are generally 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 product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities 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 any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Bargain-Hunting Signals a Shift in Sentiment

Bargain-Hunting Signals a Shift in Sentiment

Bargain-Hunting Signals a Shift in Sentiment – ETF Securities Commodity ETP Weekly

Contrarian investors drive inflows into long crude oil ETPs to a 19-week high.

ETFS Agriculture (AIGA) receives highest inflows since October 2014.

ETFS Physical Palladium (PHPD) inflows highest since November 2014 and ETFS Physical Platinum (PHPT) inflows highest since January 2015.

Gold ETPs continue to be shunned as investors dispose of defensive assets.

Download the complete report (.pdf)

The US dollar continued to appreciate (Dollar Index up 0.4% in the week), weighing on the commodity complex. With the Federal Reserve signaling that it is ready to raise rates subject to seeing “some” further improvement in the labour market, this week’s payroll numbers will be keenly watched. A strong reading could see more dollar strength. A supply glut in oil has reversed the premature rebound in prices we witnessed between March and June, providing the setting for supply tightening in the months to come. Commodity ETPs tracking oil, agriculture and platinum group metals have seen their flows benefit from bargain-hunting. Negative sentiment against gold continues.

Contrarian investors drive inflows into long crude oil ETPs to a 19-week high. Marking the fifth consecutive week of inflows, we saw US$52.5mn of flows into long Brent and WTI crude oil ETPs. When prices fell sharply between November 2014 and March 2015, we received strong inflows into oil ETPs as investors saw a bargain-hunting opportunity. The rebound in prices between March and June led to outflows as they took profit. The recent price declines are once again bringing bargain hunters back in the market. We believe the current low price environment will motivate cuts in capex amongst high cost producers and lead to higher prices over the medium term. Though, OPEC will continue to produce more oil as Saudi Arabia in particular seeks to gain market share. The nimble US shale oil industry will remain price responsive and will be able to increase production when prices rise. Most of the cuts in production will come from high-cost (e.g. deep-water, oil sand etc.) non-OPEC, non-US projects. Once those projects are deferred or even cancelled they will not come back quickly as they have long lead times. With OPEC operating so close to capacity, any shock to the market could lead to price spikes. Upside risks to price outweigh the downside at these levels.

ETFS Agriculture (AIGA) receives highest inflows since October 2014. With agricultural prices falling across the board last week (and indeed over the month), bargain hunters have sensed an opportunity. With a strengthening El Niño weather phenomenon, the likelihood of a disruption to crop production is high, potentially reversing the price declines in certain agricultural commodities. We saw US$19.8mn flow into AIGA and a further US$5.4mn flow into long wheat ETPs (a 12-week high). Grain prices were particularly hurt last week as the International Grains Council increased its grain harvest forecasts, despite Canadian and European dryness.

ETFS Physical Palladium (PHPD) inflows highest since November 2014, ETFS Physical Platinum (PHPT) inflows highest since January 2015. Receiving inflows of US$30.6mn and US$16.9mn respectively, the platinum group metals gained traction after weeks of outflows and price declines. Improving fundamentals including tighter environmental regulation (a source of demand for PGMs) and constrained mine-supply bode well for the metals.

Gold ETPs continue to be shunned as investors dispose of defensive assets. A further US$163.5mn of outflows from long gold ETPs last week highlights the extent of the rotation away from defensive assets and towards certain underpriced cyclicals.

Key events to watch this week. As the US Fed prepares to raise interest rates it will be ultra-sensitive to the payroll numbers out this week. A strong reading could consolidate the case for a rate increase and drive the US dollar higher, which could normally weigh on commodity priced in US dollars.

Video Presentation

Nitesh Shah, 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

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.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

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 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 document 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 document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document 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. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”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

Any products referenced in this document are generally 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 product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities 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 any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Price-Dips Attract Commodity Inflows

Price-Dips Attract Commodity Inflows

Commodity ETP Weekly Price-Dips Attract Commodity Inflows

ETFS Platinum (PHPT) received its highest weekly inflow since November 2014.
ETFS Sugar (SUGA) sees its highest ever inflow.
Long oil ETPs continue to see inflows.
ETFS Corn (CORN) sees highest inflows since February 2014.
ETFS Physical Gold (PHAU) saw the highest outflows since June 2014.

Download the complete report (.pdf)

The Federal Reserve Open Market Committee sent a mixed message, acknowledging the softness in prices while pointing to strength in economic expansion and jobs. US Dollar appreciated, focusing on the implications of economic strengthening on the likelihood of a rate rise. Most US Dollar priced commodities fell. The optimism in economic activity may sit at odds with the slightly disappointing GDP figures released later last week and this week’s jobs numbers could drive a reversal in Dollar strength (and hence commodity price weakness) if they prove to be disappointing.

ETFS Platinum (PHPT) received its highest weekly inflow since November 2014. US$32.8mn flowed into PHPT last week. Platinum had rallied 6.6% since the beginning of the year before last week’s 3.6% correction trimmed the gains down to 2.2%. Investors appear to be buying into price dips. Global car sales have continued to rise, supporting demand for the metal that is used in autocatalysts.

ETFS Sugar (SUGA) sees its highest ever inflow. In a week of plummeting prices, SUGA saw US$42.9mn of inflows, more than double the next highest weekly inflow into the product in 2008. Sugar prices fell on the back of rain in Brazil providing relief to stressed land. Brazil is the world’s largest producer of raw sugar. India, the second largest producer, is currently deciding on how much export subsidies to award its cash-strapped sugar industry. Some of the recent volatility in prices has been driven by speculation on the size of this subsidy.

Long oil ETPs continue to see inflows. WTI and Brent ETPs have respectively seen 18 and 7 consecutive weeks of inflows. Despite price declines over most of that period, investors appear convinced that prices will increase. We believe that supply will tighten as loss-making non-OPEC oil rigs are progressively switched off. Last week a 7% fall in rig counts in the US drove a late-week price rally. OPEC will also likely cut production in the second half of the year once the rest of the world has demonstrated their willingness to pull back.

ETFS Corn (CORN) sees highest inflows since February 2014. Bargain-hunting drove US11.0mn of inflows into CORN. Corn price fell 3.2% last week, 10.0% over the past month. With bumper production last year, many expect reduced planting this year to help stabilise the market.

ETFS Physical Gold (PHAU) saw the highest outflows since June 2014. Reversing part of the US$163.8mn inflows from the previous week, US$108.5mn of outflows last week tracked the 2.1% decline in gold price. While there was no immediate fallout from the change in Greek government, the risk of surprises in the bail-out renegotiation process could drive haven demand for gold higher in coming months.

Key events to watch this week. After last week’s disappointing US Q4 GDP figures, the market will focus on the US jobs market data this week for signs of further economic stress. A weak payrolls reading will be seen as a cue for the Federal Reserve to delay rate rises that are expected in September this year. The market is currently looking for 233,000 new jobs added in January. The Bank of England and Reserve Bank of Australia are due to have their respective policy rate meetings this week. While no rate changes are expected, commodity price weakness could tip the balance for the RBA as it had done for the Bank of Canadian two weeks ago.

Video Presentation

Nitesh Shah, 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

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.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

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 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 document 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 document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document 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. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”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

Any products referenced in this document are generally 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 product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities 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 any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Bargain Hunting Drives Precious Metal Flows to Eight-Week High

Bargain Hunting Drives Precious Metal Flows to Eight-Week High

Commodity ETP Weekly Bargain Hunting Drives Precious Metal Flows to Eight-Week High

ETFS Physical Platinum (PHPT) sees largest inflows since 2012 while ETFS Physical Palladium (PHPD) sees highest inflows since May 2014.

Record inflows into ETFS Aluminium (ALUM).

Silver ETPs see highest inflows since February 2014.

Gold ETPs see first outflow in five weeks as prospects for global growth improve.

As the price of WTI fell below US$78/bbl for the first time in 3 years, flows into long WTI ETPs rose to US$24.8mn, the highest level since March 2014.

 

Download the complete report (.pdf)

 

While precious metal prices capitulated last week, we saw strong flows into platinum, palladium and silver. Bargain hunting is clearly driving flows. With the global industrial cycle improving, demand for the more industrially dependent precious metals is likely to rise and therefore help reverse the losses these metals have sustained due to their correlation with gold. With all precious metals trading near or below their marginal cost of production, we expect mining activity to begin to be cut back, tightening supply, and supporting prices

ETFS Physical Platinum (PHPT) sees largest inflows since 2012 while ETFS Physical Palladium (PHPD) sees highest inflows since May 2014. US$45.4mn of flows into PHPT and US$38.9mn into PHPD highlights just how attractive investors think platinum group metals (PGMs) are right now. With their ubiquitous use in auto-catalysts and rising car demand in the US, China and Europe, demand for PGMs remains strong. Meanwhile unprofitable mines in South Africa are likely to continue to be shut down and the stability of exports from Russia is likely to remain a concern, which will eventually lead to upward price pressure.

Record inflows into ETFS Aluminium (ALUM). At US$96.9mn, last week’s inflow was the highest since the inception of ALUM in 2006. After years of depressed aluminium prices, in 2014 we have seen aluminium rise close to 19% year-to-date. Even last week when most other metal prices fell, aluminium gained 1.9%. The catalyst behind the rally has been the tightness in bauxite supply, a key input for aluminium production, following Indonesia’s ban on raw mineral exports. Over-production of aluminium in China is likely to be cut in 2015 as the government pulls back from continuously subsidising loss-making smelters, especially now given the tightness in the bauxite market.

Silver ETPs see highest inflows since February 2014. After falling close to 9% last week, silver prices reached the lowest levels since 2012. Relative to gold it is the cheapest it has been since 2009, despite the recent declines the gold price. The upturn in the industrial cycle bodes well for the silver and we could see the excess supply slowly be absorbed. Inflows into silver ETPs totalled US$35.7mn last week.

Gold ETPs see first outflow in five weeks as prospects for global growth improve. US economic growth in particular looks buoyant and is likely to drive the US dollar even higher, placing downward pressure on gold in dollar terms. Gold fell 4.7% last week and the pressure on the metal could remain. We saw US$85.8mn of outflows, reversing the previous four-weeks of inflows as more investors became bearish on the metal’s prospects.

As the price of WTI fell below US$78/bbl for the first time in 3 years, flows into long WTI ETPs rose to US$24.8mn, the highest level since March 2014. The price of the WTI reacted strongly to the news that Saudi Arabia had cut prices in the US. While the OPEC cartel appears to be in disarray, with the smaller members undercutting each other’s prices in Asia, we note the cartel has survived since 1960 despite the turbulence the member countries have endured since that time. We believe the November 27th meeting could be a pivotal point to sharpen the group’s common interests, likely driving the price of oil back to levels consistent with balancing OPEC government budgets, above US$90/bbl.

Key events to watch this week. A number of Chinese data releases including industrial production and loan growth will help investors gauge the strength of likely demand from the world’s largest consumer of commodities. Meanwhile the advance release of Q3 GDP from the Euro area could give an indication of the (lack of) strength of demand elsewhere.

Video Presentation

 

Nitesh Shah, 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

 

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.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

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 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 document 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 document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document 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. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”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

Any products referenced in this document are generally 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 product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities 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 any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.