HANetf The Royal Mint Physical Gold Securities ETC (RMAU) has listed on London Stock Exchange. The first physically gold backed Exchange Traded Commodity (ETC) launched by a European Sovereign Mint and The Royal Mint’s first listed financial product…..
Anne Jessopp, CEO of the Royal Mint
Competitively priced at 0.22% per annum
Custody of gold held at The Royal Mint’s highly-secure, purpose-built vault in Wales
The Royal Mint Physical Gold Securities ETC (RMAU) has listed on London Stock Exchange. The ETC is designed to offer investors an effective way to access the gold market as it tracks the physical price of gold.
This is the first listed financial product to be backed by The Royal Mint and the first physically gold backed ETC to be launched in partnership with a European Sovereign Mint. The Royal Mint has partnered with specialist white label ETF issuer, HANetf to issue, manage and distribute the RMAU ETC.
The Royal Mint is the world’s largest export mint, creating coins, medals, gifts and investment opportunities to the UK and overseas countries. With 1,100 years of heritage and expertise, The Royal Mint is a world leader in the design and craftsmanship of precious metals – and the move into the gold backed ETC market is the latest in a series of initiatives to diversify the company’s portfolio in line with evolving consumer needs.
Lida Eslami, Head of Business Development, ETFs and IOB at London Stock Exchange said: “We are delighted to welcome the first listed financial product from The Royal Mint. Their new physically gold backed ETC, in association with HANetf, will provide further opportunities for investors looking to gain exposure to precious metals, one of the most popular traded asset classes on London Stock Exchange. 20 years after the first ETF listing in Europe, the number of issuers choosing London as their listing venue continues to grow, offering investors choice across a wide range of products, asset classes and geographies. The development of a healthy secondary trading market also positions London Stock Exchange as a leading ETF trading venue in Europe”.
100% backed by London Bullion Market Association (LBMA) Good Delivery bars, the physical gold associated with RMAU will be held in The Royal Mint’s purpose-built vault – one of the UK’s most secure sites. Gold is often regarded as a safe haven investment in times of market stress and investors will now have the option to own an ETC that custodies the gold outside of the financial system. Most other gold ETCs custody their gold at commercial banks so the RMAU ETC offers an attractive alternative to investors looking to diversify their custody arrangements.
RMAU ETC securities can be redeemed in exchange for physical gold bars and coins, with delivery and storage provided by The Royal Mint, a unique feature of the RMAU ETC.
This ETC allocates gold that has been sourced on a best endeavour basis from the LBMA’s Responsible Sourcing program. The Total Expense ratio (TER) for the RMAU ETC is 0.22% per annum.
The launch of the ETC complements The Royal Mint’s existing range of precious metals products including gold, silver and platinum in the form of physical bars and coins, as well as its digital ‘Signature’ range available online.
Anne Jessopp, CEO of the Royal Mint, said: “This launch is a significant milestone for The Royal Mint as we look to the future and diversify our business for the 21st century. Today we are building on our 1,100 years of heritage and reputation for trust and security to expand into new ventures with the launch of our first ever listed financial product, becoming the first Sovereign Mint in Europe to do so.
“Our precious metals business has gone from strength to strength since its launch five years ago, and the launch of this gold backed ETC further builds on our existing range of Mint precious metal products.”
The Royal Mint Physical Gold ETC (RMAU) product details
 Compared to top 5 largest Gold ETCs from Wisdom Tree, Invesco, iShares, DWS and ZKB as of 11/02/2020 which range from 0.19%-0.40% per annum
 Gold price is $1601.61 per ounce as of 19/02/2020. Source: Bloomberg