ETF Gold

Responsibly Sourced Physical Gold by The Royal Mint – RMAU

Asset Class:

Exchange-Traded Fund

Min Investment (S$)

1

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Inception Date

19 February 2020

How Liquid

Liquid

Very liquid: Immediately able to liquidate.
Liquid: Only able to liquid at certain times.
Peer to Peer: Only able to liquid with another agreeable person.
Not Liquid: Investment cannot be withdrawn.
Campaign Based: Investor can only withdraw after campaign ends.

Expenses

0.25%

Historical Return

-0.1862% (1 Year Annualised)

Returns annualised and sourced from Bloomberg
or directly from investment platform.

RMAU – Responsibly Sourced Gold

Disclaimer: IFSG does not intend to offer or solicit anyone to buy these investments, wherever the recipient of this message may be. All investments involve risks and may result in loss. The above information and contents of Investments are for educational purposes only.  You should seek assistance from a licensed financial advisor on investment matters.

Brief informationThe Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) tracks the spot price of physical gold and is designed to offer investors an effective way to access the gold market, whilst also being shariah compliant.

It is the first financial product to be sponsored by The Royal Mint and the first gold ETC to be launched in partnership with a European Sovereign Mint.

It is custodied at the Mint rather than a bank’s vault. Uniquely retail investors can redeem for physical bars and coins.

Part of the gold custodied by the ETC will be 100% recycled gold bars. Recycled gold is less carbon intensive than mined gold.

The Royal Mint Responsibly Sourced Physical Gold ETC is backed by London Bullion Market Association (LBMA) Good Delivery bars held on a segregated basis. The gold is stored and guarded in The Royal Mint’s highly secure vault in Llantrisant, Cardiff.

The bars held are 100% in compliance with the LBMA’s 2019 Responsible Sourcing guidelines. The highest responsible sourcing standard available.

The Royal Mint won Best Physical Gold ETP Issuer (USD 100m+) at the ETF Express European Awards 2021 following its launch in February 2020.

This article is currently undergoing the vetting process.

Investment Objective 

The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) is designed to offer investors an effective way to access the gold market as it tracks the spot price of physical gold. The Royal Mint has collaborated with HANetf to develop a physically backed gold ETC which launched in February 2020. It is the first financial product to be sponsored by The Royal Mint and the first gold ETC custodied with a European Sovereign Mint. The ETC is backed by London Bullion Market Association (LBMA) Good Delivery bars held on a segregated basis. The gold will be stored and guarded in The Royal Mint’s highly secure vault in Llanstriant, Cardiff. The value of your investment may go down as well as up and past performance is no indication of future performance. Your capital is at risk. 

Why RMAU?

Gold held in custody at The Royal Mint, Wales

RMAU Gold is held in custody at The Royal Mint’s highly secure vault in Llantrisant, Wales. Operating outside of the London banking and clearance systems, RMAU provides an attractive option for investors seeking real diversification in their gold custody arrangements and is the only gold ETC to provide this.

Responsible sourcing of gold 

RMAU is backed by LBMA good delivery bars that are sourced on a best endeavour basis from the LBMA’s Responsible Sourcing program to assure investors that the gold is from conflict-free, legal sources. 

Recycled Gold

Part of the gold custodied by the ETC will be 100% recycled gold bars. Recycled gold is less carbon intensive than mined gold.

 Physical gold redemption

Investors in RMAU are able to redeem the RMAU gold ETC for physical gold bars or bullion coins – a feature unique to RMAU. Storage and delivery of the physical gold is provided by The Royal Mint. 

Shariah Compliant 

The scholars composing the Shariah Supervisory Board (‘SSB’) of Amanie Advisors Ltd have reviewed and endorsed the Royal Mint Responsibly Sourced Physical Gold Exchange Traded Certificates (‘Gold ETC’).The Gold ETC enables investors to buy certificates representing 0.01 fine troy ounce of gold. The allocated gold is stored in a vault managed by a third-party entity affiliated with the Royal Mint. Throughout the duration of the ETC program, a maximum of 10,000,000,000 metal securities will be issued.

Programme are as follows:

  1. Specific bars of precious metals will be allocated to each certificate; 
  2. The “Reference Price” of each certificate will be determined from the value of the precious metals that are allocated to the certificate
  3. Holders of the certificates can opt to receive either the physical bars of precious metals or cash when they redeem the certificate.

 Amanie hereby certify that as part of its review has reviewed the following documentation: 

  1. HanETF Base Metal Securities Prospectus 
  2. HanETF Authorised Participant Account Opening Form 
  3. HanETF ETC Securities Operating Memorandum 
  4. HanETF ETC Securities Trade form

Upon reviewing the relevant legal documentation, we are of the opinion that the Royal Mint Responsibly Sourced Physical Gold ETC is in compliance with the requirements of the Shariah principles.

Risks

  • Investors’ capital is at risk and investors may not get back the amount originally invested and should obtain independent advice before making a decision.
  • Any decision to invest should be based on the information contained in the relevant prospectus.
  • ETC securities are structured as debt securities and not as shares (equity).
  • ETC securities trade on exchanges like securities and are bought and sold at market prices which may be different to the net asset value of the ETC securities. 

1 Year

3 year

Royal Mint Responsibly Sourced Physical Gold ETC

3.68%

1.36%

Commodities – Precious Metals

-6.00%

-4.01

The Royal Mint Responsibly Sourced Physical Gold ETC over a 3-year period shows a return of +1.36%, meaning that the investment has grown by 1.36% during that time. Similarly, the 1-year analysis indicates a return of +3.68%, reflecting a growth of 3.68% over the past year

The Commodities – Precious Metals over a one-year period indicates a negative return of -6.00%, meaning the investment has declined by 6% during that time. Similarly, over a three-year period, the analysis shows a negative return of -4.01%, indicating a decline of 4.01% in value over that timeframe.

Analysis

Over a 1 Year Period

Over a 3 Year Period

Sharpe Ratio

0.26

0.02

Standard Deviation 

12.47

13.63

  • Sharpe Ratio Conclusion of RMAU:

This ratio measures how much reward you’re getting for each unit of risk. The higher the number, the better the risk-reward trade-off. Lower values indicate that the investment may not be worth the risks involved.

For RMAU, has a Sharpe Ratio of 0.26% over one year and 0.02% over three years. These positive ratios suggest that the investment has provided a return that exceeds the risk-free rate, although the levels are relatively low.

  • Annualised Standard Deviation Conclusion of RMAU:

Think of this as a “roller coaster rating.” A higher number means the ride has more ups and downs, making it potentially riskier but also possibly more rewarding. A 13.63% three-year standard deviation means there have been significant ups and downs over that time period.

Conclusion

The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) has shown positive returns over both a one-year and three-year period, with a return of +1.36% over three years and +3.68% over one year. However, Commodities – Precious Metals, including RMAU, have experienced negative returns over the same periods, with a decline of -4.01% over three years and -6.00% over one year.

Regarding risk-adjusted measures, the Sharpe Ratio for RMAU is 0.26% over one year and 0.02% over three years. These positive ratios indicate that the investment has provided a return that exceeds the risk-free rate, although the levels are relatively low. Additionally, the annualized standard deviation of RMAU, at 13.63% over three years, suggests that there have been significant ups and downs in the investment’s performance.

It’s important to consider these metrics alongside other factors, such as individual risk tolerance and investment goals, before making any investment decisions. Past performance is not indicative of future results, and it is always recommended to seek personalized financial advice when considering investment options.

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