omniture

AUM Gathered by ETF Securities (HK) Ltd Crosses HK$100M in the First Eight Trading Days

ETF Securities (HK) Limited
2012-12-12 12:22 1495

HONG KONG, Dec. 12, 2012 /PRNewswire/ --

Important:

  • The ETFS Physical Gold ETF, the ETFS Physical Silver ETF and the ETFS Physical Platinum ETF (each the "Fund") are exchange traded funds listed on The Stock Exchange of Hong Kong Limited (the "SEHK"). Each Fund's investment objective is to provide investment results, before fees and expenses, that closely correspond to the performance of the London PM Fix for gold, London Fix for silver and London PM Fix for platinum (the "Benchmark") respectively.
  • Prices of physical precious metals are highly volatile and may fluctuate widely and may be affected by numerous events or factors related to its production and sale and other financial market factors. As the Fund is concentrated in physical precious metal, it is more susceptible to the effects of such price volatility than more diversified funds. Investment in the Fund may therefore be subject to losses and, in the worst case scenario, you may lose all of your investment.
  • As each Fund primarily holds physical bullion of precious metal, the safekeeping and custody of underlying precious metal and quality of precious metal held by the Fund are key considerations which investors must consider. Although the custodian is required to allocate billions on a continuous basis once it reaches a whole bar, where bullions are held on an unallocated basis, the Fund has no proprietary rights to any specific bullion so held, and the Fund could suffer a significant loss on the custodian's insolvency.
  • Although the custodian may make insurance arrangements for the bullions held, it is not under an obligation to insure against loss, theft or damage. Further, neither the Manager nor the Trustee will maintain insurance for the bullions.
  • The Fund is not actively managed and the Manager has no discretion to adapt to market changes. A fall in the Benchmark will result in a fall in the value of the Fund. There is also no assurance that the price at which Units of the Fund are traded on the SEHK will exactly reflect the price of underlying precious metal represented by those Units.
  • As each Fund's base currency and the Benchmark are in US dollars, the value of units in the Fund that are traded on the SEHK in Hong Kong dollars will be affected by changes in the exchange rate between these two currencies.
  • The Fund is also subject to other risks, such as fixing process risk, limited operating history, tracking error risk and other trading risks. Investors should not make investment decisions on the basis of this communication alone. Please read the prospectus for details and risk factors.

ETF Securities (HK) Limited announced today that its newly launched ETF Securities physical precious metal ETF platform has taken in over HK$100M in the first eight trading days after the listing on The Stock Exchange of Hong Kong. This physical precious metal ETF platform consists of three ETFs, which are ETFS Physical Gold ETF (2830 HK), ETFS Physical Silver ETF (3117 HK) and the ETFS Physical Platinum ETF (3119 HK). With the platform ETF Securities (HK) Limited, a subsidiary of ETF Securities Group, which is one of the world's leading independent providers of exchange-traded investment products and a pioneer in commodities, introduces and offers in HK the first to market ETF to invest in Silver and Platinum.

General features of a physical precious metal ETF are:

  • Primarily backed by the respective precious metal and not synthetic;
  • Meeting the ‘Good Delivery' standards set out by either the London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM);
  • Ring-fenced and held in secure vaults;
  • Providing a cost-effective method of accessing physical precious metals;
  • Traded on an exchange during trading hours.

Fred Jheon, Managing Director and Head of Asia Pacific for ETF Securities (HK) Limited said, "We are delighted with the successful listing of the ETF Securities ETF platform in Hong Kong. Next to support for our products, we are committed to providing education and research for commodities, and we look forward to broader investor adoption in our precious metals ETFs." Chilok Cheung, Vice President and Portfolio Manager of ETF Securities (HK) Limited, said in remarks, "We are pleased with the market acceptance of our suite of precious metal ETFs, which has not only strengthened the Hong Kong commodities market, but also introduced silver and platinum ETFs for the first time to Hong Kong."

About ETF Securities Group

ETF Securities Group is a leading, independent exchange-traded products provider with expertise in commodities. It is dedicated to developing liquid, transparent investment solutions that can be traded on world stock exchanges.

The Group has a strong history of product innovation and this remains a key tenet of its guiding philosophy.  The Group's management team listed the world's first gold exchange-traded commodity in 2003, and many other market-leading investment solutions have since followed. Today ETF Securities Group offers what is believed to be the world's most comprehensive range of exchange-traded commodities and as of September 2012 was responsible for $29.9 billion in global investor assets (Source: ETF Securities Group).

To learn more about ETF Securities Group, please visit www.etfsecurities.com.

Important Information

This communication is provided for general information and educational purposes. This communication is not, and under no circumstances is to be construed as, an advertisement or invitation or any other step in furtherance of a public offering of shares in any jurisdiction other than Hong Kong (including the United States or any province or territory thereof), where none of the Manager or any units in the Funds are authorised or registered for distribution and where no prospectus in respect of the Funds has been filed with any securities commission or regulatory authority. In particular, neither this communication nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States. Neither the Manager nor any units issued by the funds 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 the Manager based on publicly available information. While the Manager has endeavoured to ensure the reliability of the information contained in this communication, the Manager does not warrant or guarantee the accuracy or correctness of any information contained herein based on any third party data provider. 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.

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 sole basis for any investment decision.

The Manager is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, the Manager 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 the Manager is authorised to behave in any way which would lead you to believe otherwise. The Manager 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.

You must seek appropriate financial, tax and other advice from independent financial advisors with appropriate regulatory authorisation and qualifications. Any decision to invest should be based on the information contained in the prospectus of the fund (or any supplements thereto) which includes, inter alia, information on certain risks associated with an investment. Investment involves risk. The price of any units may go up or down and an investor may not get back the amount invested. Historical performance is not an indication of or a guide to future performance. Units are priced in HK Dollars and the value of the investment in other currencies will be affected by exchange rate movements. The funds are traded on the exchange at market price, which may be different from its net asset value.

Investors should refer to the section entitled "Risk Factors" in the relevant prospectus for further details and other risks associated with an investment in the units issued by the funds.

Source: ETF Securities (HK) Limited
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