LONDON - Amundi Physical Metals plc has announced the issuance of a new tranche for its Amundi Physical Gold ETC, marking the 648th tranche since the series was initiated. The new tranche, consisting of 950,000 ETC Securities, will add to the existing 55,212,559 ETC Securities already in circulation.
The ETC Securities, linked to the price of gold, aim to provide investors with exposure to the metal without the need to physically hold it. The securities are part of Amundi's Secured Precious Metal Linked ETC Securities Programme and are designed to reflect the performance of gold prices, minus associated fees.
Each ETC Security has an initial metal entitlement of 0.04 fine troy ounces, which is subject to a Total (EPA:TTEF) Expense Ratio (TER) of 0.12% per annum. This fee is intended to cover operational costs and is deducted from the metal entitlement of the securities daily.
The newly issued tranche, with an issue date of January 21, 2025, will be admitted to trading on several European exchanges, including Euronext (EPA:ENX) Paris and Euronext Amsterdam, as well as Deutsche Börse, Borsa Italiana, and the London Stock Exchange (LON:LSEG). Additionally, applications have been made for the securities to be admitted to trading on the International Quotation System of the Mexican Stock Exchange.
Investors should note that the ETC Securities do not pay periodic interest, and the value of the investment can fluctuate based on the price of gold. The securities are backed by physical gold held by HSBC Bank plc as custodian, and the obligations of Amundi Physical Metals plc under the ETC Securities are secured by a pledge over the gold and the rights under the agreements entered into concerning the ETC Securities.
The securities offer an alternative to direct investment in gold, providing a level of participation in the gold market through the securities market. This issuance is based on a press release statement and is intended to give investors exposure to the gold price movement while offering the security of a regulated exchange-traded commodity.
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