27/10/09 ETF Securities exceeds $350m in assets under management (AUM) in the US within two months of inception

ETF Securities exceeds $350m in assets under management (AUM) in the US within two months of inception…

• ETF Securities’ global assets rise to all-time high of $16bn as investor demand continues (as of 14 October, 2009)

• ETFS Physical Swiss Gold Shares (SGOL) AUM now stands at $98m in AUM (as of September 28, 2009)

• ETFS Silver Trust (SIVR) AUM now stands at $123m in AUM(as of September 28, 2009)

October 21, 2009 – ETF Securities USA LLC (ETFS) announced today that the total assets under management of its two products; the ETFS Physical Swiss Gold Shares (SGOL) and the ETFS Physical Silver Shares (SIVR) now exceeds $350m as of October 21, 2009 since launch.

Globally, ETF Securities’ assets under management (AUM) have moved to an all-time high of $16bn due to strong investor interest in hard assets⁽⁵⁾ with increased government debt levels and aggressive quantitative easing policies raise concerns about the outlook for the US dollar, British pound, other major currencies and medium-term inflation risks. AUM has increased by $7.9bn this year, with 78% of the increase driven by investor inflows, as ETF Securities expanded its geographical coverage with precious metal product listings on the New York Stock Exchange and the Tokyo Stock Exchange (NYSE Arca and TSE).

Demand for physically-backed precious metal products has been a key factor behind the rise, with ETF Securities’ global physically-backed gold holdings (including products not available to US investors) seeing new all time highs. Inflows into ETFS’ gold products have been particularly strong, with a $97m increase on the week, bringing ETFS’ global gold holdings to a new record of 8.4mounces ($8.4bn), up 39% since the beginning of the year.

Flows into the physically backed gold products have shown low sensitivity to downward movements in the gold price (ie flows tend to remain firm even during periods when the gold price has dropped sharply) highlighting that the largest buyers of gold Exchange Traded Funds (ETFs) are institutional investors buying the metal as a long-term hedge against inflation, US dollar depreciation and other risks, rather than as short term trading instruments. ETF Securities believes the trend into ETF holdings signifies that most large investors’ think these risks may continue to rise.

Commenting on this milestone for ETF Securities in the US, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:

“We are very pleased to report continued healthy growth in our US precious metals offering: SGOL and SIVR assets. The feedback from investors so far has been very positive with particular praise reserved for the Swiss gold vaulting with SGOL We have received very good feedback so far from investors looking to diversify their Silver and Gold holdings into SIVR and SGOL as they are audited biannually and provide a low cost⁽³⁾ solution to those seeking exposure to the Silver and Gold markets ”

⁽¹⁾ The Sponsor expects that, for many investors, costs associated with buying and selling the Shares in the secondary market and the payment of the Trusts ongoing expenses will be lower than the costs associated with buying, selling, storing and insuring Gold and Silver bullion in a traditional allocated Gold and Silver bullion account.

⁽²⁾ The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the Gold and Silver bullion market.

⁽³⁾ Ordinary brokerage fees do apply.

Source:ETFWorld.com – ETFSecurities