The Royal Mint Lists Gold Backed Exchange Traded Commodity on London Stock Exchange | RMAU
- The Royal Mint Physical Gold Securities ETC (RMAU) will list on London Stock Exchange this week
- The first physically gold backed Exchange Traded Commodity (ETC) launched by a European Sovereign Mint and The Royal Mint’s first listed financial product
- Competitively priced [1] at 0.22% per annum
London, February 2020: The Royal Mint Physical Gold
Securities ETC (RMAU) will list on London Stock Exchange this week. The ETC is designed to offer investors an
effective way to access the gold market as it tracks the physical price of gold.
This
is the first listed financial product to be backed by The Royal Mint and the
first physically gold backed ETC to be launched in partnership with a European
Sovereign Mint. The Royal Mint has
partnered with specialist white label ETF issuer, HANetf to issue,
manage and distribute the RMAU ETC.
The Royal Mint is the world’s largest export mint,
creating coins, medals,
gifts and investment opportunities to the UK
and overseas countries. With 1,100 years of heritage and expertise, The Royal
Mint is a world leader in the design and craftsmanship of precious metals – and
the move into the gold backed ETC market is the latest in a series of
initiatives to diversify the company’s portfolio in line with evolving consumer
needs.
100%
backed by London Bullion Market Association (LBMA) Good Delivery bars, the
physical gold associated with RMAU will be held in The Royal Mint’s
purpose-built vault – one of the UK’s most secure sites. Gold is often regarded
as a safe haven investment in times of market stress and investors will now have
the option to own an ETC that custodies the gold outside of the financial
system. Most other gold ETCs custody their gold at commercial banks so the RMAU
ETC offers an attractive alternative to investors looking to diversify their
custody arrangements.
RMAU
ETC securities can be redeemed in exchange for physical gold bars and coins,
with delivery and storage provided by The Royal Mint. A unique feature to the
RMAU ETC.
This
ETC allocates gold that has been sourced on a best endeavour basis from the LBMA’s Responsible Sourcing program. The Total Expense ratio (TER) for the RMAU
ETC is 0.22% per annum.
The
launch of the ETC complements The Royal Mint’s existing range of precious
metals products including gold, silver and platinum in the form of physical
bars and coins, as well as its digital ‘Signature’ range available online.
Anne
Jessopp, CEO of the Royal Mint, said:
“This launch is a significant milestone for The Royal Mint as we look to the
future and diversify our business for the 21st century. Today we are
building on our 1,100 years of heritage and reputation for trust and security
to expand into new ventures with the launch of our first ever listed financial
product, becoming the first Sovereign Mint in Europe to do so.Our
precious metals business has gone from strength to strength since its launch
five years ago, and the launch of this gold backed ETC further builds on our existing
range of Mint precious metal products.”
Jatin
Patel, Head of Wealth Management at The Royal Mint commented: “Gold continues to be recognised as
the world’s leading means of trading and storing wealth. As one of the UK’s
most trusted organisations, we are excited to be able to offer investors yet
another way of gaining exposure to gold whilst having the confidence that it is
safely stored in our vault.”
The Royal Mint Physical Gold ETC (RMAU)
product details:
Name |
The Royal Mint Physical Gold ETC (RMAU) |
Primary Ticker |
RMAU |
Denomination |
Each ETC is equal to 1/100th of a troy ounce of gold at launch which is approximately $15 per ETC based on today's price of gold [2] |
Asset backed |
100% backed by London Bullion Market Association (LBMA) Good Delivery bars |
Custody |
The Royal Mint, Llantrisant (near Cardiff), Wales |
Redemption |
Investors can redeem for physical gold alternatives including gold bars and coins. Storage and delivery provided by The Royal Mint |
Sourcing of gold |
This ETC allocates gold that has been sourced on a best endeavor basis from the LBMA's Responsible Sourcing program |
Total Expense Ratio |
0.22% per annum |
Listing |
London Stock Exchange |
The
Royal Mint has partnered with white label specialist, ETF issuer, HANetf to issue,
manage and distribute the RMAU ETC. The founders of HANetf have extensive knowledge of gold investment products and were
co-founders and owners of the first company that invented gold exchange traded
funds (ETFs) and other commodity ETFs.
Nik
Bienkowski, Co-Founder of HANetf, the specialist white label ETF platform,
added: “We are very
excited to have been able to work with a brand as prestigious as that of The
Royal Mint on the launch of its first ETC. Gold
ETCs have always been a popular way for investors to gain exposure to the gold
price. The Gold will be stored in The
Royal Mint’s vault, one of the country’s most secure sites. The Royal Mint brand is synonymous with the
security and reliability investors want to see from a gold ETC and makes it an
attractive option for investors who are looking to hedge systemic risk. We
believe the RMAU ETC will appeal to investors looking to diversify their custody
arrangements and make use of the physical redemption service.”
When
you trade ETCs, your capital is at risk.
For professional investors only. This content
is issued by HANetf Limited), an appointed representative of Mirabella Advisers
LLP, which is authorised and regulated by the Financial Conduct Authority.
If you
would like more information about visit the RMAU ETC fund page.
The
Royal Mint and HANetf will be hosting a webinar on Thursday 27th February
titled “Why the Royal Mint has sponsored an ETC”. To register visit: www.hanetf.com/webinars
Product identifiers
EXCHANGE |
BB CODE |
RIC |
ISIN |
SEDOL |
CCY |
London Stock Exchange |
RMAU LN |
RMAU.L |
XS2115336336 |
BKT7175 |
USD |
London Stock Exchange |
RMAP LN |
RMAP.L |
XS2115336336 |
BKT7197 |
GBP |