Page 23 - Bullion World Volume 4 Issue 11 November 2024

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Comprehensive Gold Backing and Custody An Expanding Product Portfolio
The newly launched ETCs are designed to be 100% HANetf, Europe’s first and only independent full-service
backed by responsibly sourced gold bars that meet white-label UCITS ETF and ETC platform 2, and leading
the stringent standards set by the London Bullion provider of digital asset ETPs, is delighted to announce
Market Association (LBMA). Specifically, these bars the launch of three FX hedged responsibly sourced
are classified as Good Delivery and have been sourced physical gold ETCs in partnership with The Royal Mint:
responsibly post-2019, with a growing number from The three new ETCs follow The Royal Mint Responsibly
2022 onward. All gold backing the ETCs is custodied Sourced Physical Gold ETC (RMAU), HANetf’s first
in The Royal Mint's highly secure vault located in listed financial product in partnership with The Royal
Llantrisant, Wales. This secure storage provides an Mint. RMAU has surpassed the $1 billion assets under
alternative to traditional banking custody arrangements management (AUM) milestone.
commonly found in London, offering investors a chance
for true diversification in their gold holdings. Flexibility in Redemption
Investors will also benefit from the flexibility offered by
Commitment to Sustainability the new ETCs, as they can redeem their investments
A distinctive feature of these ETCs is their commitment for physical gold from The Royal Mint. The range of
to sustainability. A portion of the gold bars backing the redemption options includes various gold bars and
products will be comprised of 100% recycled gold, coins, reflecting The Royal Mint’s extensive portfolio that
reflecting The Royal Mint's dedication to environmentally features popular collections such as the Sovereign and
friendly practices. Recycled gold is recognized for being Britannia ranges. This aspect adds an additional layer of
over 90% less carbon-intensive compared to mined value for investors who may wish to hold physical gold.
gold, making it a significantly greener choice. As part of
their ongoing sustainability efforts, The Royal Mint aims
to increase the proportion of recycled gold in the ETCs
over time. Importantly, all gold custodied within these Conclusion
products is sourced ethically, with no exposure to gold of The launch of the currency-hedged
Russian origin. physical gold ETCs in partnership
with The Royal Mint represents a
Currency Hedging Options progressive step toward meeting
Investors in the new ETCs will have the advantage of the increasing demand for
currency hedging options, specifically in pound sterling sustainable and ethically sourced
(GBP) and euro (EUR), with plans to introduce a Swiss investment products. With secure
franc (CHF) option soon. Given that gold is primarily custody, stringent sustainability
quoted in US dollars (USD), many traditional gold
products expose investors to USD fluctuations. For measures, and effective currency
those who wish to gain from rising gold prices without hedging options, these new ETCs
the added concern of US dollar depreciation, these provide a compelling opportunity
currency-hedged products serve as an ideal solution. By for investors looking to diversify
canceling out US dollar positions, investors can focus their portfolios and align their
solely on the performance of gold prices. investments with modern ethical
standards. For further information,
Daily FX hedging will be employed, ensuring that any interested parties can refer to the
profit or loss from currency fluctuations is converted into official press release.
gold, thereby minimizing counterparty risks associated
with foreign exchange hedging.

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