The intelligent alternative

Transcription

1 The intelligent alternative

2 The ETF Securities Group provides accessible investment solutions enabling investors to intelligently diversify their portfolios. We are pioneers in specialist investments, having developed the world s first gold exchange traded commodity. Today we offer one of the most comprehensive ranges of specialist exchange traded products (ETPs) covering commodities, FX and thematic equities. The intelligent alternative Using that pioneering spirit, our unrivalled expertise and by working with best-in-class third parties, we seek out the most relevant opportunities and make them accessible to investors as intelligent alternatives.

3 Page 5 Introduction The world of investment is undergoing a profound and significant change. The traditional asset management model is under threat from a range of new products and technologies, all of which are helping to provide the end user (be they an institution or a private investor) with a more diversified range of options, at a lower cost. At the heart of this change is the exchange traded product or ETP as it is known. This acronym is used to describe a range of product structures including exchange traded funds (ETFs) and exchange traded commodities or currencies (ETCs). ETPs are fundamentally changing the asset management model and, in some core markets including the US, they are already growing their market share relative to their traditional peers. With offices in Jersey, London, New York, Sydney and Hong Kong, the ETF Securities Group is at the forefront of this revolution. We ve been a pioneer in working with partners of all sizes and types to provide ETPs from the very beginning of this momentous transformation. Going forward, we will remain loyal to our pioneering spirit to continue to provide access to the specialist opportunities investors need to intelligently diversify their portfolios.

4 Page 7 Past and future pioneers Institutional investors or high net worth individuals, while their specific needs may be unique, require the right tools to achieve their individual goals. The ETF Securities Group has been providing such tools for over a decade now and we will continue to strive to provide our investors with the intelligent building blocks needed to create a welldiversified portfolio. Our track record of 2003 Gold World s first commodity ETP 2005 Oil World s first oil ETP 2006 Full commodity suite First full range of exposures to individual and baskets of commodities innovation demonstrates this proudly Short & leveraged commodity suite Multi-swap counterparty UCITS ETF platform Full foreign exchange suite U.S. platinum and palladium Extended foreign exchange suite Hong Kong silver and platinum First full range of geared exposures to individual and basket commodities First multi-swap ETF platform; reduces the issuer s exposure to any single financial institution Long and short USD and EUR denominated single currency pairs First U.S. physically backed platinum and palladium ETPs Added 3x FX currency pairs exposure First Hong Kong physically backed silver and platinum ETPs Physical redemption of Gold ETC China A-Shares Physical ETF Extended foreign exchange suite further Throughout this past decade of growth and diversification, one constant has remained true our skill as innovators has First Gold ETP to offer physical redemption to retail & institutional investors First European physically backed China ETF to track MSCI China A-Shares Index Added 5x FX currency pairs exposure allowed us to provide the most interesting opportunities to intelligently diversify or enhance our investor s portfolio.

5 Page 9 Who uses our products and what makes us different? ETF Securities is the trusted ETP solutions provider amongst its growing base of European institutional investors, including investment managers, hedge funds and private wealth advisers. In the last few years, we have also been actively focused on penetrating selected retail segments across Europe. We are doing this by being a leader in ETP-focused education, both for end-investors as well as their financial intermediaries. We will continue to focus on providing clarity to investors, as we believe this is vital to them getting the best value from their use of ETPs. A decade of accumulated insight into investors needs enables us to replace complexity with clarity, helped along by the recognition that we are specialists not generalists we don t try to be all things to all people. Being responsive to customers challenges and concerns, especially around developing new products, is how we deliver the tailored opportunities needed by our investors. Often this is best achieved by working collaboratively with carefully selected third parties, who have best-in-class expertise to complement ours. We work with a range of index providers, administrators and custodians, amongst others, to best serve our investors. We believe in sound product management. In line with this, we regularly review our product range to assess if any products need to be improved or de-listed. We also prioritise risk management and will continue to develop new tools in support. Five key strengths underpin what we do every day and all of them working together is what makes us different, specialist and unique the intelligent alternative. Intelligence We are built on unrivalled expertise, from the incisive analysis we offer to the unique products we provide Transparency by replacing complexity with clarity Ideas We constantly seek out relevant specialist investment opportunities and make them accessible Innovations needed to intelligently diversify portfolios Heritage Specialism We are not generalists, nor do we try to be all things to all people. Instead we collaborate, from carefully selected suppliers to best-in-class partners Superior products engineered to high standards combined with sound product and risk management Strength Diverse and robust product offering with a proven track record of success Proven offering based on over 300 ETPs and robust infrastructure to manage billions of AUM We are pioneers, renowned for launching the world s first gold ETP that changed the face of investment Proven expertise, trusted issuer and reliable solutions provider

6 Page 11 The ETF Securities leadership team ETF Securities strategic development as a specialist asset manager with global reach is guided by a highly experienced senior leadership team. The ETF Securities business is led by Mark Weeks, our CEO, and Joe Roxburgh, our CFO. They are supported by a management team with proven and diverse expertise, from new product identification, build and management through to research, client coverage and marketing. Graham Tuckwell, founder and chairman of the ETF Securities Group, continues to take an active interest in the business, acting as a sounding board for the leadership and management teams, while aiding the overall group s strategic development.

7 Page 13 Global asset management, a marketplace in transition An increasingly uncertain macroeconomic environment, combined with technology advances and ongoing regulatory and policy changes mean investors needs continue to evolve. NYSE Bolsa Mexicana LSE / Euronext / Deutsche Börse / SIX/ Borsa Italiana HKSE ASX In response, the global asset The first wave of ETP issuers focused More recently, investors have What is clear is that smart beta is The ETF Securities Group has New smart beta ETPs and, in time, management industry continues on providing the basic building increasingly demanded access to an umbrella term for an investment been at the forefront of developing the next wave of ETPs will continue to undergo a period of profound blocks for a mainstream portfolio. more dynamic themes or styles style where the manager passively more intelligent solutions within to emerge. In 2015 and beyond, our evolution. All business models, These simple and low cost funds leading to the concept of Smart Beta, follows an index designed to take the commodity ETP space for the aim is to remain at the forefront of including those of successful ETP could fit inside any portfolio, the emerging third wave of ETPs. advantage of perceived systematic last decade. Increasingly, we are these developments, by continuing providers, are being tested and with institutional or retail. Smart beta is an elusive term with biases or inefficiencies in the market. taking this experience and applying to be a pioneer and not a follower no room for complacency. In order to better understand how the ETP space has adapted to this change, it s helpful to understand the evolution of ETPs in terms of broad product waves. The need for more specialised diversification within those portfolios quickly became obvious, meaning new specialised asset classes and specialist providers. In effect, this was the second wave of ETPs and when the ETF Securities no strict definition and is sometimes also referred to as advanced or enhanced beta or even cheap alpha. The intent is a more effective product than plain passive management, while being cheaper than active management. it to new asset classes, regions and investor types. So while commodities will always remain core to what we do, it is not all we do. Intelligent diversification in our product offering is central to our strategic advancement. in meeting investors ever changing needs. Group started its pioneering journey.

8 Page 15 In recent years, our nimbleness to innovate has centred on our ability to collaborate with other industry experts through Canvas, our corporate development function. How partnerships and the evolving role of Canvas are unlocking further innovation for investors We have chosen to collaborate with industry experts based on the distinct advantages and services they can provide for the end investor. Our collaborations range from asset managers who are experts in a specific market, index providers with intelligent intellectual property or service providers that have strong expertise in providing a robust and efficient infrastructure in administration, custody and secondary market activities. Collaboration with external experts has always been a core part of how we realised opportunities. By formalising this approach within Canvas, we have been able to fully utilise our skills and expertise to focus on what we do best. By working with best-in-class experts, we continue to enhance our range of full service investment solutions, which best serve our investors needs. Increasingly Canvas is responsible for all our major collaborations to ensure the relationships we build in developing our business continue to enhance the service we provide to our end investors. To find out more about Canvas, our centre of excellence for partnerships, please visit: etfcanvas.com

9 Page 17 The central role of ETPs going forward The diversity of products within our own range reflects the meteoric growth of ETPs globally. ETPs, first introduced in 1990, are rapidly increasing their share of the US$32 trillion global mutual fund industry. In fact, ETPs are now a US$2.6 trillion AUM segment of the global asset management industry, having grown at a Compound Annual Growth Rate (CAGR) of 27.1% since December We provide a comprehensive range of exchange traded products, designed to give investors of all types and size the necessary building blocks to build or enhance a properly diversified portfolio. Source; ETFGI, data as at 31 December 2014 Visit our global website etfsecurities.com Our dedicated client coverage, product and research teams can help you to find out more about how to intelligently build or enhance a diversified investment portfolio.

10 Page 19 Important Information: This financial promotion has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited ( ETF Securities ) which is authorized and regulated by the United Kingdom Financial Conduct Authority ( FCA ). 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 ETF Securities based on publicly available information. Although ETF Securities endeavours to ensure the accuracy of the content in this communication, ETF Securities 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 ETF Securities has expressed its own opinions related to product or market activity, these views may change. Neither ETF Securities, 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. ETF Securities is required by the 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, ETF Securities 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 ETF Securities is authorised to behave in any way which would lead you to believe otherwise. ETF Securities 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. etfsecurities.com The intelligent alternative

11 Jersey ETF Securities Limited (ETF Securities Group Head Office) Ordnance House 31 Pier Road St. Helier JE4 8PW Channel Islands London ETF Securities (UK) Limited 3 Lombard Street London EC3V 9AA United Kingdom t +44 (0) f +44 (0) e infouk@etfsecurities.com New York ETF Securities (US) LLC 48 Wall Street New York NY United States t f e infous@etfsecurities.com Sydney ETF Securities (Australia) Pty Limited Level 27, AMP Centre 50 Bridge Street Sydney NSW 2000 Australia t e infoau@etfsecurities.com Hong Kong ETF Securities (HK) Limited Level 13, Silver Fortune Plaza 1 Wellington Street, Central Hong Kong t f e infohk@etfsecurities.com