CANVAS BUILD YOUR OWN ETF

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1 CANVAS BUILD YOUR OWN ETF A SERVICE PROVIDED BY ETF SECURITIES

2 INTRODUCING CANVAS BUILD YOUR OWN ETF CANVAS is an innovative platform that offers whitelabelled ETFs to the asset management industry, with a focus on speed to market as well as capital and resource efficiency. CANVAS was launched by ETF Securities, one of the world s leading providers of exchange-traded products (ETPs) in The company s management team listed the world s first physically-backed gold ETP in 2003 and now offers over 300 ETPs covering a wide range of commodity, currency and equity exposures listed on major exchanges around the world. ETF Securities has a strong history of product innovation and has successfully created a number of ETFs for third parties. At the end of August 2013, worldwide assets invested in ETPs issued by ETF Securities were approximately US$22 billion.

3 YOUR ETFs WITH CANVAS FLEXIBLE AND BESPOKE TO YOU There is a lot to think about and do when operating an ETF. CANVAS provides a full range of services from development to full management of your ETFs. Our open architecture platform allows you to choose the services required from us for your ETF. Our team of experienced professionals can guide you through the process, from the initial design and launch of a new ETF to the day-to-day management involving on-going legal, compliance, index replication and risk management. PLUG AND PLAY YOUR ETF This is the most efficient and cost-effective way for an asset manager to build its own ETFs with CANVAS. Under the plug and play service, CANVAS works with you to set up an ETF on our existing issuer using our full infrastructure and network of service providers. This is normally the preferred option if you are flexible on which service providers to use and speed to market is key. YOUR OWN BESPOKE ETF PLATFORM This service is designed for those looking for the most flexible solution in providing ETFs to their clients. Under this bespoke service, CANVAS will work with you to set up a range of ETFs on your own issuing platform whilst leveraging off some of our existing infrastructure to achieve economies of scale for your business. If you have a preference for working with certain service providers or having more control over the issuer, this may be the option for you. CONVERT YOUR UCITS FUND INTO AN ETF This is for an asset manager that currently operates a UCITS fund but its clients are asking that it be listed, structured with intraday liquidity and to include other inherent benefits of ETFs. Under this conversion service, CANVAS will work with you to help merge your UCITS fund into an ETF. This may be the option for you if you are looking to attract further assets via the ETF structure. ADD AN ETF SHARE CLASS TO YOUR UCITS FUND This is for an asset manager that wishes to continue maintaining its current UCITS fund but wants to provide its clients with the same investment exposure via an ETF share class. Under this service, CANVAS can advise you on how this can be achieved and take you through the operational process of an ETF. This may be the option for you if you are looking to attract further assets via the ETF structure. PHYSICAL (IN-SPECIE) OR SYNTHETIC (SWAP-BACKED)? We can provide both models as well as a hybrid which may be helpful for underlying exposures that have limited or restricted access.

4 ABOUT CANVAS CANVAS provides the asset management industry with the ability to launch white-labelled ETFs quickly and efficiently, through a single point of contact. CUSTOMISATION Blank canvas to design your ETF FLEXIBILITY Utilise proven infrastructure with an open architecture platform SPEED Fast-track the ETF build process to minimise development time SUPPORT Advice through every step of the development process SIMPLICITY ETFs managed on your behalf COST REDUCTION Lower start-up and operating costs EFFICIENCY Preserve your internal resources for other products or projects TRUST Rely on established experience and track record in ETFs

5 WHY YOU SHOULD CONSIDER ETFs GROWTH INSTITUTIONAL APPEAL THE RETAIL REVOLUTION In 2013 global assets in ETFs reached US$2 trillion 1 : a tenfold increase over a decade thus making it one of the fastest growing categories of investment products in the world. The trend looks set to continue. Why? ETFs offer efficient diversification in traditional assets, such as shares and bonds, and open up previously restricted sectors, such as commodities or emerging markets, whilst being as easy to trade as shares. Additionally, they provide the following benefits to investors: Intraday liquidity Transparency with live market pricing Flexible investment product within the UCITS framework The vast majority of assets in European ETFs belong to institutional investors 2. Institutional investors are increasingly looking towards ETFs to gain regional exposure to developed markets and emerging markets or access to specific asset classes such as equities, bonds, fixed income, money markets or commodities. The characteristics of ETFs, with its ease of trading, liquidity and transparency, have made them attractive investment tools. Europe is still underdeveloped in comparison to the US where exchange traded products account for 20% of all passive investments, compared to only 8.7% in Europe 2. The adoption of exchange traded products in the retail market looks to increase as marketing of investment products tied to retrocession fees payable to brokers and investment advisers are increasingly being scrutinised or banned altogether (for example, the Retail Distribution Review in the UK). This is putting greater emphasis on the distribution of exchange traded products. 1 ETFGI LLP (January 2013) 2 Vanguard, Evolution of ETFs, November 2012

6 CANVAS etfcanvas.com Issued by ETF Securities (UK) Limited, authorised and regulated by the Financial Conduct Authority of the United Kingdom