Etikett: Russia

Markets whipsaw between hawkish Fed and softer data

ETF Securities ETP Markets whipsaw between hawkish Fed and softer dataMarkets whipsaw between hawkish Fed and softer data

ETFS Multi-Asset Weekly – Markets whipsaw between hawkish Fed and softer data

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Highlights

•  Commodities: Gold under pressure after 2015 rate hike odds stacked at 50/50.
•  Equities: Change in Fed’s tone sees choppy trading week for global stocks.
•  Currencies: Hawkish Fed raises the prospect of a 2015 rate hike.
•  Upcoming webinar: Global commodities, have we reached the floor in prices? Register here to attend.

Asian stocks have opened on a weaker footing after official data highlighted contraction in China’s manufacturing sector continuing through October. Although the factory activity came in higher than the previous month at 48.3, the reading remains below 50 dampening hopes of an expansion and renewing concerns of a slowdown in the world’s second largest economy. The release of the figures saw oil come under pressure. As US policy makers continue to eye December as a possible lift-off date, the October jobs report will provide further clues on the trajectory of interest rates. This week central banks in UK and Australia will announce their key interest rate decision.

Commodities

Gold under pressure after 2015 rate hike odds stacked at 50/50. Gold slid to $1134 last week hitting its lowest level in four weeks after the Federal Reserve concluded its last meeting on an unexpectedly hawkish note, bolstering the US dollar. Silver declined to $15.5 tracking gold lower. Wheat posted its biggest weekly gain in four months rising 6.4% as weather concerns in Ukraine, Russia and Australia continue to remain supportive of the price. Concerns are lingering over the quality of the wheat crop in Australia that is forecast to receive heavy rain in the days ahead. In addition better than expected export sales reported by the US department of Agriculture (USDA) improved the demand outlook for wheat. The ninth consecutive week of decline in the US oil rig count helped WTI crude and Brent oil rise rally 4.5% and 3.3% respectively.

Equities

Change in Fed’s tone sees choppy trading week for global stocks. Global stocks traded higher after the Federal Reserve softened their stance towards global financial risks and hinted at the possibility of a 2015 rate hike at the December meeting. However a lacklustre Q3 earnings season coupled with weaker US GDP data and falling consumer confidence forced markets to concede most of their gains last week. Eurozone and German inflation climbed out of negative territory and consumer confidence rose unexpectedly. In the US Exxonmobil and Chevron emerged as the latest victims of declining oil and gas prices, reporting a 63% and 47% drop in earnings per share for the third quarter while downstream operations rose. In Europe, Royal Dutch Shell announced its worst loss in 16 years.

Currencies

Hawkish Fed raises the prospect of a 2015 rate hike. The greenback rose sharply after the Federal open market committee (FOMC) meeting but retraced all its gains after a slew of weak US economic data. The October jobs report is now all the more import as guide for a December lift off by the highly data dependent Fed. Sweden’s Riksbank left its key rate unchanged but expanded the QE bond buying program by another SEK 65bn. The New Zealand central bank hinted at rate cuts ahead but opted to leave rates unchanged. The Chinese Yuan posted its largest one-day gain in 10 years on speculation the central bank would introduce reforms to foster yuan denominated trading to foreign firms. The 1% rise in Japanese industrial production after a 1.2% contraction in the previous month strengthened the Bank of Japan’s case to keep policy unchanged helping the Yen trade higher. The Aussie dollar remained lower after a weaker inflation reading raised hopes of a rate cut this week.

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 issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (”FCA”).

Investments may go up or down in value and you may lose some or all of the amount invested.  Past performance is not necessarily a guide to future performance. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.

The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.

This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective, officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.

ETFS UK is required by the FSA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction.  No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

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Delisting of Alpcot Russia UCITS ETF

Delisting of Alpcot Russia UCITS ETF

Delisting of Alpcot Russia UCITS ETF The board of Alpcot SICAV has decided to delist Alpcot Russia UCITS ETF on Friday 23 October 2015. The Fund’s ISIN code is LU0539165034.

Last day of trading shares on Nasdaq is Friday 23 October 2015.

Alpcot’s other funds are not affected by the delisting. Sell orders are placed as usual; through aninternet bank, broker or bank branch.

For the sale, customary commission is charged.

The sales proceeds are usually paid two business days after the trade date to the account connected to the securities account.

The board of Alpcot SICAV has also decided to liquidate the fund Alpcot Russia, which has to be approved by the regulator in Luxembourg, Commission de Surveillance du Secteur Financier (CSSF).

Provided that CSSF approves the liquidation, the liquidation is estimated to start immediately following the last day of trading for the Alpcot Russia UCITS ETF.

The liquidation is estimated to take up to three weeks. Alpcot’s other funds are not affected by the liquidation.

Shareholders who have not sold their shares in Alpcot Russia UCITS ETF before 23 October 2015 will have their shares redeemed in connection with the liquidation.

The proceeds from the liquidation will be paid the the account connected to the securities account.

If you have any questions in relation to the delisting, please call +44 (0)20 7518 0532 or send an email to info@alpcot.com

Energy Wars, The Fight for Market Share

Energy Wars, The Fight for Market Share

Energy Wars, The Fight for Market Share While the glut in global oil supply had initially driven oil prices down 60% to a 6-year low in March 2015, prices have rebounded more than 30% since.

Although oil demand has surprised to the upside, we believe that the market is overly optimistic about supply tightening. The incentive for producers to reduce oil output diminishes the longer oil prices remain high.

We believe that there is potential for a short-term correction in prices, providing investors a more attractive entry point in the near future.

After high-cost producers actually respond to the weaker prices and cut production, we see the oil prices rebounding again in Q4 2015 and beyond.

OPEC will continue to rebuild the market share that it has lost to high producers in the era of $100+/bbl oil.

The US shale industry is unlikely to be the main casualty from the fight for market share. Being a more nimble, price responsive industry with significantly lower lead times than conventional oil, US shale is likely to continue to be a growth industry in the long term. We believe that high cost conventional players will become the main losers from the current price war.

OPEC plays the long game

As widely expected, OPEC maintained the status quo, keeping its production ceiling at 3o million barrels a day at its June 5th meeting. In sharp contrast to its November 2014 meeting, when the market was expecting a cut that was not delivered, oil prices increased after the meeting. OPEC had cited the increase in demand as a reason for maintaining current production levels and the market took that as a bullish sign.

However, we would caution that the rise in demand has been driven by bargain hunting that will fade as prices increase. China’s filling of strategic reserves is likely to continue this year, but will not be a permanent source of new demand once the new storage capacity has been exhausted.

Market share in context

It is useful to put the fight for market share into context. In “Energy Wars – the battle of technologies” (March 2015) we wrote about the disruptive force of fracking in the US that has usurped lower-cost incumbents from their prior position of dominance in global oil production.

It is clear from the chart opposite that market share has never been static. In 1985 for example US production of oil was considerably larger than Saudi Arabian production. OPEC in aggregate was producing less than a third of global production.

However, by 2005, US production was reduced to less than 9% of global production while Saudi Arabian production accelerated to over 13%. Russian production also declined to under 12% of global from close to 19% in 1985. OPEC production grew to over 40% of global production.

By 2014, US production rebounded to over 13% of the global total, taking market share from a loss in other OECD countries. Meanwhile OPEC had only given up 1.5% of its global share between 2005 and 2014.

If the US maintained the sharp increase in oil production that it has seen over the past few years (see chart below), it would only be a matter of time before the US would take a more significant share of global production away from OPEC. The US had already overtaken Saudi Arabia in 2014.

With US shale oil production being more costly than conventional oil production from most OPEC countries, it is unsurprising that OPEC no longer wants to support a price of US$100/bbl, just to see its market share erode by the US and other high-cost producers. OPEC declared war on market share in its November 2014 meeting and followed through by maintaining an elevated production celling in its June 2015 meeting.

It is also clear that the US has only a small fraction of the world’s proved reserves of oil (see next page). Collectively, OPEC has more than 70% of the wold’s proved oil reserves, but only produces just over 40% of global oil output. This imbalance would deteriorate even more if high cost producers including the US continue to raise production. It is therefore unsurprising that OPEC seeks to increase its output to a level that is commensurate with its reserves.

OPEC production continues to increase

Despite OPEC setting it ceiling at 30 million barrels per day, in reality, it produces far more than this. OPEC output is currently more than 31 million barrels per day according to their official statistics. With oil prices significantly lower than the US$100/bbl mark of last year, individual OPEC members are forced to produce and sell more to make up for lost revenue. Individual countries are likely to produce as much as they can without care for the overall ceiling or their own quota. While Saudi Arabia’s oil minister described the last OPEC meeting as “surprisingly amicable” we believe that discord between members is rife. The smaller OPEC members are calling for production cuts, but the Saudi-led GCC block believes it will bear the brunt of the loss in market share as smaller countries produce more.

Although the financial position of OPEC members such as Nigeria and Venezuela remains precarious, Saudi Arabia with next to no sovereign debts to its name can afford to run budget deficits and play the long game.
Potential easing of international sanctions against Iran could increase supply from OPEC even more. Iran is unlikely to heed to production quotas set by OPEC as it desperately tries to rebuild the market share it has lost. Indeed Iraq is not even set an OPEC quota.

Production elsewhere remains elevated

While US rigs have been shut off at an unprecedented rate, actual US output has continued to increase. That reflects the fact that the most inefficient rigs were the first to be switched off and remaining rigs have been moved to more easily accessible oil.

Eventually the reduction in US rigs should lead to lower production in the US. As the productivity of a well can fall by as much as a half after the first year of production, a lack of new investment is likely to translate into lower production. Elsewhere, the evidence of supply tightening is limited. Global output of oil has only just started to level out. High cost producers outside of the US mainly extract conventional oil which has long lead times. They take a long time to both open and shut production and therefore cannot be as responsive to price changes as the US shale oil producers.

Global CAPEX to decline

About US$100bn of CAPEX cuts have been announced across the industry. That will see projects, particularly deep-water and capital intensive ones getting deferred and even cancelled, helping to tighten the market.

However, we believe the market has reacted too early to this prospect of this tightening. The premature gains in price could stifle the progress in cutting supply. The common belief across the industry that “somebody else will cut while I continue to invest and expand” obviously has its limitations.
Also it is unclear how much of the US$100bn cuts in CAPEX relates specifically to oil production as opposed to gas production or even oil projects that have not even been sanctioned yet.

Demand driving the recent gains in price

Most of the gains in oil price since the last OPEC meeting seem to stem from optimistic demand projections. Both the OPEC and International Energy Agency have raised their demand forecasts. However, if consumer demand is indeed that sensitive to falling prices, it will equally be sensitive to rising prices. Once again, a premature increase in price could choke off some demand.

Chinese strategic petroleum reserves

After coming close to filling its reserves earlier in the year, China is building new storage. That will act as a tailwind for demand. However, that source of demand cannot be sustained indefinitely and tightening supply will be needed to achieve a global balance.

A political premium in oil

With approximately 4% of global oil supplies going through the Bab el Mandab choke point near Yemen, the Saudi Arabia-led airstrikes on Yeman pose a risk to oil reaching its intended destination. The conflict is showing no signs of respite, with 31 people killed last week by the Royal Saudi Air Force, bringing the UN’s estimate of civilian deaths to 1,412 since March. Some of the gains in price since March, when the conflict started, reflect the political premium that the war poses. Easing or aggravation of the conflict could drive the political premium lower or higher.

The penetration of ISIS into Iraq and the progress in international negotiations with Iran’s are also likely to change the political premium and dictate volatility in crude oil prices.

Price outlook: dip and then rise

We believe the optimism in supply tightening will be dialed back until we actually see supply making a material cutback. That will see prices dip initially. That price dip will be important in maintaining the current pace of demand recovery. China will continue to fill its new strategic reserves, providing a tail wind to oil demand.

Over the past month, net speculative long positioning in Brent futures contracts has contracted by 44% as investors have curbed their expectations for price gains.

Once CAPEX declines start to bite into production levels we believe that prices will stage a recovery. That decline in production will be borne by high cost producers, such as deepwater operations and other capital intensive projects.

We believe that Brent and WTI could decline to US$60/bbl and US$55/bbl respectively, before recovering to US$75/bbl and US$70/bbl in 2016.

Market share outlook:

OPEC will continue to produce more oil and pursue a strategy of building market share. OPEC’s market share could rise to 45% from 42% currently, especially if sanctions against Iran are lifted.

Despite the decline in US rig counts we don’t expect US shale oil production to materially decline over a sustained period. Those rigs are relatively easy to switch back on and when other high cost producers have cut back, the nimble US shale oil industry will be able to take advantage of better pricing. The number of oil wells that have been drilled but not yet bought into production have soared. According to IHS there are approximately 1,400 drilled but uncompleted wells (DUCs) in the Eagle Ford in south Texas (as of April 2015). Of these uncompleted wells, approximately 40% could be economical (i.e. break-even) at prices below US$30/bbl according to IHS. Assuming 50 wells per month can be completed from the DUCs, we could see an additional 123,000 barrels of oil per day produced by the end of the year. Wood Mackenzie estimate the number of DUCs across the US stood at 3,000 (March 2015). In short, the potential for production from the US to ramp up quickly is tremendous. We do not believe the US will be a casualty in terms of market share from the current price war – it will be other high cost producers.

Important Information

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 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 thi rd party data provid ers 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 clari fy 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 rec ommendation 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 affor ded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.
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Oil Falls as OPEC Disappoints

Oil Falls as OPEC Disappoints

Oil Falls as OPEC Disappoints

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OPEC resisted calls to cut production last week, disappointing investors who had positioned for a tightening of oil supply. Brent oil fell more than 8% in response. OPEC countries, which produce approx. 40% of global oil output, refrained cutting because non-members like Russia and Mexico made it clear that they will not reciprocate and hence OPEC countries will simply lose market share. Last week’s inaction increases the need for a large cut at the June 2015 OPEC meeting. Although the Swiss population rejected the proposal for their central bank to hold 20% of its assets in gold, support for metal will likely come from India. In a surprise move, the Indian government loosened the restrictions on gold imports, which will likely increase physical gold demand as local premiums fall

Oil ETPs inflows surged in anticipation of production cuts. Last week we saw US$12.4mn and US$13.3mn of flows into long Brent and long WTI oil ETPs respectively. Flows into Brent were the highest since August while flows into WTI were the highest in four weeks. Although OPEC resisted calls to cut production last week, we believe the cartel will eventually have to reduce supply to help stabilise global oil prices. The cartel jointly produces approximately 40% of global oil output. While the US is gaining an increasing share of global output (by displacing oil imports through its own production) and Russia remains a formidable player, we believe it is too early to write off OPEC as an irrelevant cartel when it comes to setting global prices. We believe that last week’s inaction increases the need for a large cut at the June 2015 OPEC meeting. Many OPEC countries need oil prices above US$100/bbl to balance government budgets. While these countries can run budget deficits, the appetite to do so will wear thin as the cost of financing starts to increase. We believe that OPEC countries will reunite to work in their common interest instead of engaging in a price war. Indeed the price of oil right now is too low for many of the shale and tight oil operations in the US to remain profitable and will curtail the rapid expansion of US oil production until prices stabilise at a higher level. We believe some investors will view today’s oil price as an attractive entry point in anticipation of tightening supplies in 2015 and will accumulate long positions in oil ETPs. Other investors may pare their holdings in response to yesterday’s inaction if they have a shorter investment horizon.

Investors favour palladium over platinum. Palladium ETPs received US$33.6mn of inflows last week, marking a 3-week high, while platinum ETPs saw outflows of US$10.4mn, marking a nine-week low. Both demand and supply drivers support palladium over platinum. Brisker car sales growth in the US and China compared to Europe supports more greater palladium use over platinum. Palladium supply is also more constrained, given historic reliance on Russian State stockpile sales, which we believe have dwindled close to zero.

ETFS Nickel (NICK) sees highest inflows since May on supply concerns. US$14.9mn flowed into NICK last week. Some investors fear that the Philippines could follow Indonesia’s lead in banning raw ore exports. China had become highly reliant on the Philippines for high grade laterites imports for its nickel-pig-iron (NPI) production. If the Philippines also ban exports of the ore, Chinese production of NPI could suffer and raise demand for closely related nickel in 2015.

Key events to watch this week. Next week will be dominated by central bank decisions with the Bank of Canada, Bank of England and European Central Bank having their respective policy meetings. While no changes in policy setting are expected, guidance for the future will be closely watched. We will finish the week with US non-farm payrolls. Any strong growth in jobs could be construed as a cue for the Federal Reserve of the US to raise interest rates in H1 2015, which would be gold price negative.

 

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

 

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This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.

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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.

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Oil and Gold Remain Top Trades as Bargain Hunting Drives Inflows

Oil and Gold Remain Top Trades as Bargain Hunting Drives Inflows

Commodity ETP Weekly, Oil and Gold Remain Top Trades as Bargain Hunting Drives Inflows

Highlights

Bargain hunting drove US$7.4mn into long oil ETPs, marking the longest stretch of weekly inflows since 2012.

Long wheat ETPs saw their 17th consecutive week of inflows as investors mounted bets on a less bearish USDA report.

Concern over China and supply prompted another week of outflows in industrial metal ETPs, marking the largest cumulative four week outflow since May 2013.

Gold and oil ETPs both respectively saw their 9th consecutive week of inflows. The price of gold and oil has fallen in recent weeks, in part reflecting a reduction in the geopolitical premium following a ceasefire agreed by Ukraine and Russia. Bargain hunting investors have chosen to increase their holdings of oil with its price looking particularly attractive, with both Brent and WTI oil benchmarks trading below US$100/bbl. We believe OPEC is likely to cut production if demand for oil continues to remain weak, which will in turn help support prices. Despite weakness in gold prices, investors have generally maintained holdings over the past few months. Daily flow data however indicates that some investors are losing patience with gold in recent days and its weak price could test the endurance of some investors if the relatively stable geopolitical situation lasts.

Bargain hunting drove US$7.4mn into long oil ETPs, marking the longest stretch of weekly inflows since 2012. Although bets weren’t completely one-sided, with US$2.7mn of inflows into short oil ETPs, many investors are doubtful that the current weakness in oil price can persist. Weak global demand for oil products this summer, combined with the limited impact of geopolitical risks on OPEC and Russian oil supply sent both Brent and WTI prices to multi-month lows. With production reaching multi-decade highs, US oil inventories had remained above its 5-year range until very recently and stockpiles at Cushing have been slowly rebuilding. While Chinese oil imports and the US summer driving season have not been as supportive of oil demand as expected, the US Energy Information Agency (EIA) is forecasting a supply deficit for the second half of 2014 and OPEC is anticipating a pick-up in global oil demand during the remaining months of 2014. Should that pick-up in demand not materialise, we believe that OPEC will cut production from its current target of 30mb/d.

Long wheat ETPs saw their 17th consecutive week of inflows as investors mounted bets on a less bearish USDA report. After months of successive production and stock upgrades, some investors thought that last Thursday’s World Agricultural Demand and Supply Estimate report would show some stabilisation. It turns out that they were disappointed. The price of wheat fell 4.2% last week alone and is now trading at the lowest level since 2010. With wheat priced for perfect growing conditions, any small hiccup in weather in major producing countries or an escalation in trade restrictions could drive a price rally. More bargain hunting is likely with prices at multi-year low levels.

Concern over China and supply prompted another week of outflows in industrial metal ETPs, marking the largest cumulative four week outflow since May 2013. Last week, US$9.1mn was redeemed from ETFS Industrial Metals (AIGI) basket and most long industrial metal ETPs saw outflows. Long copper ETPs in particular saw US$18.6mn of outflows. Industrial metal prices declined as jitters over the health of Chinese demand troubled investors and the probability of the Philippines following Indonesia’s lead in banning ore exports has lessened. By the end of the week, however, China reported strong credit growth for the past month, which should go a long way to ease concerns about its ability to drive demand for commodity-intensive house building and infrastructure construction.

Key events to watch this week. The Federal Reserve’s FOMC meeting will be the focus of market attention. The US central bank is expected to continue to taper its bond-buying programme at the current rate, which will only leave another meeting (after this week’s) before it announces a stop to more purchases. After a disappointing US payrolls report, the market will watch out for any changes in forward guidance that could signal rate changes slower than current market expectations.

Download the complete report (.pdf)

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.