A safe investment since ancient times. The exclusive manager of Julius Baer Funds. A member of the GAM group.

Transcription

1 A safe investment since ancient times Julius BAEr PRECIOUS METALS FUNDS The exclusive manager of Julius Baer Funds. A member of the GAM group.

2 2 Swiss & Global Asset Management

3 Precious metals success factor debtfree and real benefit Stephan Müller Head Product Management & Development The precious metals gold, silver, platinum and palladium all offer outstanding properties in every economic cycle. In addition to their monetary character in crisis periods, industrial uses are shaping their potential in growth markets. Regardless of how different their physical and chemical characteristics may be, one thing they have in common is their finite reserves and the fact that, as a rule, they cannot be held liable for third-party debt. Gold and silver therefore offer protection against declining value stemming from debt-driven inflation, while the demand for platinum and palladium is directly buoyed by economic growth. In October 2008, Swiss & Global Asset Management launched the JB Physical Gold Fund, the first physically-backed gold ETF worldwide with currency hedging. Swiss & Global s precious metals range was completed in January 2010 with the addition of the JB Physical Silver Fund, the JB Physical Palladium Fund and the JB Physical Platinum Fund. While the risk/return properties differ depending on the economic cycle, the funds share the following attributes, including, amongst other things: Currency hedging Precious metals are traded in US dollars. Non-USD investors, such as Swiss investors in precious metals, therefore face currency risks that may be incurred when converting USD into the currency of the custodial account. These risks are eliminated in the CHF, EUR and GBP unit classes, since all currency units are hedged against the US dollar. The investor therefore participates fully in the performance of the precious metal in question. Physical backing The JB Precious Metals Funds are fully backed by physical precious metals. Holders of share class A may, on request, receive payment in kind in the form of standard bars or smaller units. Security and liquidity Security and liquidity are at the forefront of Swiss & Global s funds. There is no issuer risk related to JB Precious Metals Funds, since the funds are physically backed in full by allocated and segregated standard bars. The fund units can therefore be traded on a daily basis, thanks to their listing in the ETF segment on the SIX Swiss Exchange. Swiss made The Swiss funds invest solely in physical precious metals, which are held exclusively and wholly in Switzerland. The JB Precious Metals Funds at a glance: The funds invest only in physical metals stored exclusively in Switzerland Professional currency hedging of the CHF, EUR and GBP shares versus the USD; investors thus participate fully in the price development of the metals Security and liquidity are most important - no additional costs or safekeeping and no issuer risk Physical delivery starting at one standard bar Swiss & Global Asset Management 3

4 Our offer overview of the jb precious metals funds JB Physical Gold Fund The JB Physical Gold Fund has been a true success story since its launch in October It invests in physical gold in the form of standard bars (around 12 kg / 400 ounces). The flagship of our range of precious metals funds is the first gold ETF worldwide with currency hedging. Strong demand for gold is being met with an increasingly short supply. Despite state-of-the-art exploration technology, the primary supply of gold has fallen by around 1.3% annually since This development, coupled with growing demand for debt-free real assets, is heightening investor awareness of gold. Key factors influencing investment decisions are the expansion in money supply, global sovereign debt and fears over defaults. Although intervention by the central banks in the currency markets is shoring up liquidity in the financial markets, the future holds considerable potential for inflation. The latter is fuelling the demand for gold, since it is regarded as a debt-free currency whose real value will continue to exist. Julius Baer Precious Metals - Physical Gold Fund Fund data, A shares, USD (as at 31/12/2014) ISIN Domicile Legal structure CH Switzerland Performance 12/13-12/ % 1 Performance 12/12-12/ % 1 Performance 12/11-12/ % 1 Performance 12/10-12/ % 1 Performance 12/09-12/ % 1 Total fund assets Base currency Available currencies FCP under the law of Switzerland 1, million USD USD; CHF, EUR, GBP (hedged) Date activated Benchmark GOLD London PM Fixing / USD Fund Management Company Swiss & Global Asset Management Ltd. Exchange SIX Swiss Exchange 1 Rolling performance, complete 12-month figures Fund holdings in gold ETPs (Exchange Traded Products) Tonnes 3'000 2'800 2'600 2'400 2'200 2'000 1'800 1'600 1'400 1'200 ETP fund holdings Gold (rhs) 2'000 1'800 1'600 1'400 1'200 1' USD/oz Past performance is not an indicator of current or future trends. The performance values refer to the net asset value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g. transaction and custody cost of the investor). 1' Source: Bank Julius Baer & Co. Ltd. - Commodity Research Swiss & Global Asset Management

5 JB Physical Silver Fund The JB Physical Silver Fund, which has been in existence since January 2010, invests in physical silver in the form of standard bars (approx. 30 kg / 1,000 ounces). It is the first silver ETF worldwide with currency hedging. Silver is used predominately in industrial applications. With its thermal and electric conductivity, silver is indispensable, especially in the electronics industry. Silver is also used in jewellery manufacture and in medical applications, owing to its antibacterial properties. Institutional and private investors use silver within their portfolios, since it features gold s monetary attributes and, at the same time, is boosted by demand in growth cycles because of its wide range of industrial applications. Julius Baer Precious Metals Physical Silver Fund Fund data, A shares, USD (as at 31/12/2014) ISIN Domicile Legal structure CH Switzerland Performance 12/13-12/ % 1 Performance 12/12-12/ % 1 Performance 12/11-12/ % 1 Performance 12/10-12/ % 1 Total fund assets Base currency Available currencies FCP under the law of Switzerland million USD Date activated USD; CHF, EUR, GBP (hedged) Benchmark Fund Management Company Exchange SILVER London PM Fixing / USD Swiss & Global Asset Management Ltd. SIX Swiss Exchange 1 Rolling performance, complete 12-month figures Fund holdings in silver ETPs (Exchange Traded Products) Tonnes 22'000 20'000 18'000 16'000 14'000 ETP fund holdings Silver (rhs) USD/oz Past performance is not an indicator of current or future trends. The performance values refer to the net asset value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g. transaction and custody costs of the investor). 12' ' Source: Bank Julius Baer & Co. Ltd. - Commodity Research 2014 Swiss & Global Asset Management 5

6 JB Physical Palladium Fund The JB Physical Palladium Fund was established in January 2010 and has grown steadily in volume ever since. It invests in physical palladium in the form of standard bars (approx. 5 kg / 150 ounces). The fund is the first palladium ETF worldwide with currency hedging. Palladium is used mainly in the production of catalytic converters for petrol engines and in fuel cells to convert hydrogen and oxygen into electricity. Palladium is also an excellent catalyst to speed up chemical reactions, especially the hydrogenation and dehydrogenation of hydrocarbons. The strong ties to nickel mining, which produces palladium as a by-product, has a significant influence on the price trend, as does the automotive industry. But also the Russian crisis and its impact on Russian nickel production affect the palladium price substantially. Julius Baer Precious Metals Physical Palladium Fund Fund data, A shares, USD (as at 31/12/2014) ISIN Domicile Legal structure CH Switzerland Performance 12/13-12/ % 1 Performance 12/12-12/ % 1 Performance 12/11-12/ % 1 Performance 12/10-12/ % 1 Total fund assets Base currency Available currencies FCP under the law of Switzerland million USD USD; CHF, EUR, GBP (hedged) Date activated Benchmark Palladium London PM Fixing / USD Fund Management Company Exchange Swiss & Global Asset Management Ltd. SIX Swiss Exchange 1 Rolling performance, complete 12-month figures Fund holdings in palladium ETPs (Exchange Traded Products) ETP fund holdings Palladium (rhs) 1' Past performance is not an indicator of current or future trends. The performance values refer to the net asset value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g. transaction and custody costs of the investor). Million ounces USD/oz Source: Bank Julius Baer & Co. Ltd - Commodity Research Swiss & Global Asset Management

7 JB Physical Platinum Fund The JB Physical Platinum Fund, which was launched in 2010, invests in physical platinum in the form of standard bars (approx. 5 kg / 150 ounces). It is the first platinum ETF worldwide with currency hedging. Bearing in mind that demand for platinum is largely controlled by the automotive and jewellery industry, it is therefore linked to European economic development, since roughly 50% of production is used for diesel catalytic converters. Increasingly strict European emission regulations are increasing pressure on manufacturers to produce environmentally-friendly diesel engines. This should continue to drive up the demand for platinum. The supply side is concentrated heavily on South Africa, which accounts for 80% of annual output. Due to the closure of certain mining projects and the attendant restriction in total production volumes, the price of platinum has risen markedly of late. The upward pressure on the price is being additionally bolstered by the Russian crisis and the strikes in South Africa. Julius Baer Precious Metals Physical Platinum Fund Fund data, A shares, USD (as at 31/12/2014) ISIN Domicile Legal structure CH Switzerland Performance 12/13-12/ % 1 Performance 12/12-12/ % 1 Performance 12/11-12/ % 1 Performance 12/10-12/ % 1 Total fund assets Base currency Available currencies FCP under the law of Switzerland million USD USD; CHF, EUR, GBP (hedged) Date activated Benchmark Platinum London PM Fixing / USD Fund Management Company Exchange Swiss & Global Asset Management Ltd. SIX Swiss Exchange 1 Rolling performance, complete 12-month figures Fund holdings in platinum ETPs (Exchange Traded Products) Million ounces ETP fund holdings Platinum (rhs) 2'000 1'800 1'600 1'400 1'200 1' USD/oz Past performance is not an indicator of current or future trends. The performance values refer to the net asset value and are calculated without the commission and costs incurred on issue, redemption or swapping (e.g. transaction and custody costs of the investor) Source: Bank Julius Baer & Co. Ltd - Commodity Research 2014 Swiss & Global Asset Management 7

8 Outlook Correctly positioned for every cycle For some time after the Lehman crisis, it seemed the only way was up for the precious metals gold, silver, platinum and palladium. By the beginning of September 2011, the price of gold had risen to its erstwhile all-time high of USD 1,921/ oz, this from a low of USD 253 shortly before the turn of the millennium. Since 2013 precious metals have corrected and now again offer interesting entry levels for investors taking a long-term view. The short-term development of the gold price in 2015 will be influenced by the global debt crisis and the ECB and the Fed tackling low inflation. Over the long term, demand from Asia in particular will determine the price trend. The expansion of money supply and the bailout packages are positive for gold in that they heighten the potential for inflation and thus cast the spotlight on gold as a debt-free currency. Price corrections could hold sway over the short term, as we saw in April These offer good entry opportunities, given that the global debt crisis and dealing with it will persist for years to come. For 2015, a price range between USD 1,100 and USD 1,200 is realistic. Anticipate growth phases with white precious metals The valuations of white precious metals corrected with the economic slump in 2008, but rose again from The price of silver was particularly impressive, climbing to a 30-year high at above USD 49 in April Following the correction, silver offers a solid basis for the future. For 2015, a price range between USD 14 and USD 16 is realistic. Platinum is currently profiting less from industrial demand (dependency on the European automotive industry) than from restrictions on the supply side. The closure of mining projects and strikes in South Africa are limiting the total production volume. For 2015, a price range between USD 1,200 and USD 1,400 is realistic. Meanwhile, palladium is profiting from the increase in car sales worldwide and the stricter regulations on emissions. Compared with platinum, the fundamental backdrop for palladium is bolstered by robust demand. The Russian crisis and the dependency of palladium on Russian nickel production are creating additional positive price pressure. For 2015, a price range between USD 700 and USD 900 is realistic. Irrespective of the short-term market developments, precious metals are extremely attractive in every cycle. They profit in general from being the epitome of a debt-free currency. While gold and silver enjoy monetary character in inflationary environments, platinum and palladium profit in high-growth cycles. Source of all data (unless otherwise stated): Swiss & Global Asset Management 8 Swiss & Global Asset Management

9 Buy JB Precious Metals Fund units can be bought and sold on the secondary market through the SIX Swiss Exchange. Orders for all four metals are accepted on exchange trading days at the following times from 9:00 a.m. to 5:30 p.m. CET. Units may also be underwritten or returned on the primary market directly with the fund via Transfer Agent at NAV (cutoff times: silver 11:00 a.m. CET, platinum and palladium 2:00 p.m. CET, gold 3:00 p.m. CET). Costs Trades of less than CHF 500,000 on the primary market are currently subject to issuing commissions of 3%* or redemption commissions of 1%*. Bid/offer prices are quoted on the secondary market. The custodial bank may also charge brokerage fees for conducting the trade on the stock exchange. Stamp duty (0.075%) is charged on trades concluded on the SIX Swiss Exchange. Settlement Units can only be settled through partners with access to SIX SIS (formerly SEGA). Share class A (with physical delivery) ISIN USD ISIN CHF ISIN EUR ISIN GBP Management fee Julius Baer Physical Gold Fund CH CH CH CH % p.a. Julius Baer Physical Silver Fund CH CH CH CH % p.a. Julius Baer Physical Platinum Fund CH CH CH CH % p.a. Julius Baer Physical Palladium Fund CH CH CH CH % p.a. Share class AX* (without physical delivery) ISIN USD ISIN CHF ISIN EUR ISIN GBP Julius Baer Physical Gold Fund CH CH CH CH % p.a. Julius Baer Physical Silver Fund CH CH CH CH % p.a. Julius Baer Physical Platinum Fund CH CH CH CH % p.a. Julius Baer Physical Palladium Fund CH CH CH CH % p.a. * AX -denominated share classes have an identical set-up as the A share class and will be fully collateralized with the respective physical precious metal. However, in the case of the AX share class, physical delivery and the payment of reimbursements or retrocessions are explicitly excluded in the fund contract and the prospectus. Swiss & Global Asset Management 9

10 10 Swiss & Global Asset Management

11 Important legal information The information in this document is given for information purposes only and does not qualify as investment advice. No liability is assumed for the accuracy and completeness of the information. Opinions and assessments contained in this document may change and reflect the point of view of Swiss & Global Asset Management in the current economic environment. This document qualifies as marketing material. Investments should only be made after a thorough reading of the current prospectus and/or the fund regulations, the current simplified prospectus (or the Key Investor Information Document, as soon as it is available), the articles of association, and the current annual and semi-annual reports (the legal documents ), as well as after consulting an independent finance and tax specialist. The value of the units and the return they generate can go down as well as up. They both are affected by market volatility and by fluctuations in exchange rates. Swiss & Global Asset Management does not assume any liability for possible losses. The performance of past values and returns is no indicator of their current or future development. The performance of values and returns does not include the fees and costs which may be charged when buying, selling and/or switching units. Swiss & Global Asset Management is not a member of the Julius Baer Group. The fund described here is an investment fund according to Swiss law (other funds for traditional investments) and is admitted for public distribution and offering exclusively in Switzerland. Particularly, the funds are not registered and, therefore, may not be offered for sale or be sold in the United States of America and their dependencies. Fund Management Company is Swiss & Global Asset Management Ltd., Hardstrasse 201, P.O. Box, CH-8037 Zurich, custodian bank is Bank Julius Bär & Co. AG, Bahnhofstrasse 36, Postfach, CH-8010 Zurich or RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Badenerstrasse 567, CH-8048 Zurich or Royal Bank of Canada (Suisse) SA, Rue François-Diday 6, CH-1204 Geneva. Copyright Swiss & Global Asset Management Ltd. - all rights reserved

12 Switzerland Head Office Swiss & Global Asset Management Ltd Hardstrasse 201 P.O. Box 8037 Zurich T Swiss & Global Asset Management SA Rue Vallin Geneva T /2015 Copyright 2015 Swiss & Global Asset Management