|
 |
ETF Securities experiences continued inflows into ETCs as investors
bet on rising oil prices
15/12/08
- Net long positions of $483m experienced over past five weeks
- Net long positions of $218m added to oil, contributing 45% of all ETC flow
- Net long positions of $140m added to physical gold ETCs, contributing 29% of all
ETC flow
- Commodities remain best performing asset class over five and ten years
- ETF Securities issues commodities report "Commodities Review 2008"
ETF Securities Limited (ETFS), the global pioneer of Exchange Traded Commodities
(ETCs), and provider of Exchange Traded Funds (ETFs) has seen continued strong inflows
into ETCs. Last week was the fifth consecutive week of inflows into ETCs, with $323
million flowing into a range of ETCs including precious metals, energy and industrial
metals. This included $403 million into long ETCs including Classic, Forward and
Leveraged ETCs and outflows of $80 million from Short ETCs. The inflows are
a result of more positive investor sentiment. In addition, the collateralisation
of the full value of over 120 ETCs has significantly reduced the credit exposure
of ETCs issued by ETFS Commodity Securities Limited.
Oil inflows continue to be strong. Combined flows into ETFS Crude Oil (CRUD), ETFS
Brent (OILB), ETFS WTI (OILW) and ETFS Leveraged Crude Oil (LOIL) rose by $61 million
last week, the 7th consecutive weekly increase. Inflows into long oil ETCs have
now risen by $218 million over the past five weeks, reversing the strong outflows
during August and September. ETFS Short Crude Oil (SOIL) recorded its eighth of
the past nine weeks with outflows, indicating a more positive outlook since oil
prices moved into the $40 to $50 per barrel range. This is in contrast to only a
few months ago when oil prices peaked at around $147 per barrel and ETFS Short Crude
Oil (SOIL) was the most highly traded ETC and ETF on the London Stock Exchange (LSE).
In the past five weeks, energy ETCs experienced $225 million of inflows while short
energy ETCs experienced $30 million of outflows, equating to a net long position
of $255 million. In total, energy ETCs contributed 53% to the total net long
position added to ETCs.
Physical gold ETCs also experienced positive inflows over the past five weeks, with
$140 million begin added to ETFS Physical Gold (PHAU) and Gold Bullion Securities
(GBS). ETFS Physical Platinum (PHPT) added $33 million while there was also
a reduction in the net position of short precious metal ETCs. In the
past five weeks, precious metal ETCs experienced $171 million of inflows while short
precious metal ETCs experienced $4 million of outflows, equating to a net long position
of $175 million. In total, precious metal ETCs contributed 36% to the total
net long position added to ETCs.
Industrial metal ETCs also saw some activity over the past five weeks. Despite
industrial production forecasts having been revised down recently, ETFS Industrial
Metals DJ-AIGCISM (AIGI) added $8 million. In total, $13m
of long industrial metal ETCs were added. However the largest trades were
seen in outflows of short industrial metal ETCs. Short industrial metal
ETCs experienced outflows of $25m. This equates to a net long position of
$38 million being added to industrial metals. In total, industrial metal ETCs
contributed 8% to the total net long position added to ETCs.
Today, ETF Securities is also announcing the release of its annual commodities review.
Commodities Review 2008 goes though the major events for each commodity this year.
The driving factors behind commodity prices in 2008 included increasing demand,
particularly from China and other emerging nations, numerous supply related issues,
and the global financial crisis which caused a sell off in every asset class.
Over the past 12 months, gold was the stand out performer with a return of approximately
2% in US Dollars, 37% in British Pounds and 18% in Euros. Over the longer term,
commodities have outperformed almost every other asset class - energy and precious
metals were some of the top performers over the last five and ten years. Grains
and precious metals were the top performers over the past three years. The
report "Commodities Review 2008" may be obtained directly from ETF Securities
or through its website.
In total, ETF Securities now offers more than 130 ETCs with over $6.4 billion in
assets. The ETCs provide investors with a wide variety of investment strategies
with ETCs offering physical, long, forward, leveraged and short exposure to all
commodity sectors. ETCs are simple to access as they are traded in three currencies
(Euros, USD and Sterling) and listed on five major European Exchanges including
the London Stock Exchange, Euronext Paris, Euronext Amsterdam, Deutsche Borse and
Borsa Italiana. Most recently, ETF Securities listed Europe's first carbon
ETC - ETFS Carbon (CARB) is designed to track the price of carbon emissions allowance
futures traded on ICE.
Commenting, Nik Bienkowski, Chief Operating Officer, at ETF Securities, said:
"Inflows into Exchange Traded Commodities over the past five weeks shows that
many investors are still interested in a wide range of commodities despite the recent
pull back as a result of the weakening economy. $323 million of inflows into ETCs
over five weeks is a good achievement in any market. With inflows into long
ETCs and outflows from short ETCs, a net long position of $483 million has been
accumulated.
"Of the $483 million net long position, 53% has been into energy ETCs with
45% of this being into a range of long oil ETCs. With oil having fallen from
$147 per barrel to around $45 per barrel, many investors now see this as a long
term buying opportunity. While demand for oil has fallen, longer term supply
issues still exist such as falling production, falling reserves and a shortage of
skilled workers. Regardless of an investor's view, ETF Securities offers both
long and short ETCs which enable investors to profit in a rising or falling market."
"Precious metals and gold also continue to receive significant interest.
$140 million has flowed into physical gold ETCs such as ETFS Physical Gold as investors
continue to show concern over risks to the world's financial system, currencies
and credit. Including $33 million into ETFS Physical Platinum, precious
metals contributed 33% to the increased net long position in ETCs of $483 million.
Over the past 12 months, gold was the stand out performer with a 2% return - a fitting
result given that capital preservation has been the key. In other major currencies,
gold returned 37% in British Pounds and 18% in Euros.
For further information, please contact:
Helen Burden
Tel: +44 (0) 20 7448 4330
Email: helen.burden@etfsecurities.com
For more information on ETF Securities forward schedule of conference calls
and events visit:
http://www.etfsecurities.com
Notes to Editors:
ETF Securities Ltd is a provider of Exchange Traded Commodities (ETCs) and
Exchange Traded Funds (ETFs). ETF Securities is independently owned is the European
market leader in ETCs. The management of ETF Securities pioneered the development
ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia
and London in 2003 and then the world's first entire ETC platform which was listed
on the London Stock Exchange in September 2006. ETF Securities has most recently
launched the largest platform of thematic sector ETFs in Europe providing exposure
to European firsts such as Coal, Steel, Shipping and Nuclear Power.
To learn more about ETF Securities go to:
www.etfsecurities.com
This press release does not constitute or form part of any offer or invitation to
sell or issue, or any solicitation of any offer to purchase or subscribe for, any
securities (together the "Securities")of ETFS Commodity Securities Limited,
ETFS Metal Securities Limited or ETFS Oil Securities Limited or any shares
(the "Shares") of ETFS Fund Company public limited company (the "Fund")
or any other shares or securities, nor shall it or any part of it nor the fact of
its distribution form part of or be relied on in connection with any contract or
investment decision relating thereto. Any offer, invitation or solicitation shall
be made solely by means of the relevant prospectus (plus any supplements thereto)
in the case of the Securities or the prospectus together with the relevant sub-fund
supplement in the case of the Shares (in each case the "Prospectus") and
recipients of this advertisement who are considering a purchase of Securities or
Shares following distribution of the Prospectus are reminded that any such purchase
should be made solely on the basis of the information contained in such Prospectus.
This advertisement does not constitute any recommendation regarding the Securities
or the Shares.
The communication of this press release is not being made by, and this press release
has not been approved by, an authorised person for the purposes of section 21 of
the Financial Services and Markets Act 2000 (the "FSMA"). Accordingly
this press release is not being distributed to, and must not be passed on to, the
general public in the United Kingdom. The communication of this press release or
any other document issued in connection with the offer and sale of the Shares or
Securities is only being made to and directed at those persons in the United Kingdom
falling within the definition of Investment Professionals (as defined in Article
19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the "Order"), or high net worth entities, and other persons to whom
it may otherwise lawfully be communicated, falling within Article 49(1) of the Order
or any person to whom it may otherwise lawfully be made (all such persons together
being referred to as "relevant persons"). The communication of this press
release (or any other document issued in connection with the offer and sale of the
Shares or Securities) must not be acted upon or relied upon by persons who are not
relevant persons. The Fund is a collective investment scheme for the purposes of
the FSMA and is a recognised scheme for the purposes of the FSMA. Persons distributing
this press release must satisfy themselves that it is lawful to do so. All
applicable provisions of the FSMA must be complied with in respect of anything done
in relation to the Shares or Securities in, from or otherwise involving the United
Kingdom.
This is not an offer of securities for sale in the United States. The Shares and
Securities have not been and will not be registered under the US Securities Act
or any other applicable law of the United States. The Shares and Securities are
being offered and sold only outside the United States to non-US persons in reliance
on the exemption from registration provided by Regulation S of the US Securities
Act. None of ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS
Oil Securities Limited and ETFS Fund Company public limited company (each an "Issuer")
has been or intends to become registered as an investment company under the United
States Investment Company Act of 1940 (as amended) (the "Investment Company
Act") and related rules. Neither the Shares nor the Securities or any beneficial
interest therein may be reoffered, resold, pledged or otherwise transferred in the
United States or to US persons. If an Issuer determines that any holder of shares is
a US Person or any holder of Securities is a Prohibited US Person (being a US Person
who is not a "qualified purchaser" as defined in the Investment Company
Act), the Issuer may redeem the Shares or Securities (as the case may be) held by
that Security Holder in accordance with the provisions described in the Prospectus.
Neither the Shares nor the Securities may be purchased with plan assets of any "employee
benefit plan" within the meaning of section 3(3) of the United States Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), any "plan"
described in section 4975(e)(1) of the United States Internal Revenue Code of 1986,
as amended (the "Code") or any entity whose underlying assets include
"plan assets" of any of the foregoing by reason of an employee benefit
plan's or other plan's investment in such entity, which employee benefit plan, plan
or entity is subject to Title I of ERISA or section 4975 of the Code or any United
States Federal, state, or local law or non-United States law that is substantially
similar to the prohibited transaction provisions of section 406 of ERISA or section
4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited
Benefit Plan Investor"). If the Issuer determines that any Security Holder
is a Prohibited Benefit Plan Investor, the Issuer may redeem the Securities or Shares held
by that person in accordance with the provisions described in the relevant
Prospectus.
"Dow Jones," "AIG®" "Dow Jones-AIG Commodity IndexSM,"
"DJ-AIGCISM", "Dow Jones-AIG Commodity 3-Month Forward Index"
are service marks of Dow Jones & Company, Inc. and American International Group,
Inc. ("American International Group"), as the case may be, and are licensed
for use for certain purposes by ETF Securities Ltd. ETCs based on the DJ-AIGCISM
or related sub-indices (including single commodity sub-indices) or 3-Month Forward
Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial
Products Corp. ("AIG-FP"), American International Group, or any of their
respective subsidiaries or affiliates, and none of Dow Jones, AIG-FP, American International
Group, or any of their respective subsidiaries or affiliates, makes any representation
regarding the advisability of investing in such product(s).
ETF Securities Limited, ETFS Commodity Securities Limited, ETFS Metal Securities
Limited, ETFS Oil Securities Limited, Gold Bullion Securities Limited and ETFS Fund
Company PLC are each regulated by the Jersey Financial Services
Commission
To obtain a copy of the prospectus please visit the website at
www.etfsecurities.com
|
|
|
