Closure of the ETFS Physical Renminbi ETF

Jun 06, 2018

ETFS Management (AUS) Limited ACN 150 433 828 (ETFS), as responsible entity for the ETFS Physical Renminbi ETF (Fund) has resolved to permanently close the Fund, realise all investments of the Fund and distribute the available proceeds to Holders by compulsorily redeeming all Units in the Fund (Redemption), effective after the close of trading on 6 August 2018 (Last Trading Day). As a result of the Redemption, units in the Fund will be suspended from quotation on the AQUA market of the Australian Securities Exchange (ASX) and removed from trading status after the close of trading on the Last Trading Day and all units will then be compulsorily redeemed in accordance with the Fund's constitution.

Background

ETFS has undertaken a review of the Fund and determined that it would be in the best interests of Holders to close the Fund by compulsorily redeeming all Units in the Fund. ETFS made this determination for several reasons, including that:

there has been limited investor interest in the Fund since it was established, with year-to-date average daily trading volume of approximately $2,500, an average of less than three on-market trades per month during the past 12 months and with zero fund inflows since inception; and
the Fund has not reached sufficient size to properly achieve its investment objectives, with a current net asset value of approximately $500,000, and it is not expected that the size of the Fund will increase in the near future.

By this letter, ETFS is providing unitholders with 60 days’ notice of the Redemption. This communication outlines the steps that will be taken to affect the Redemption of all Units in the Fund and seeks to inform you as to what action you may take.Important datesSet out below are a summary of the key dates relating to the Redemption.

Dispatch of this letter6 June 2018
Last day for dealings in the units in the Fund and last day for redemption of units in the Fund by Authorised Participants (the Last Trading Day)6 August 2018
Ex-date for distribution of income for the period 1 July 2018 to 7 August 20187 August 2018
The date at which the Redemption of units in the Fund will occur (the Redemption Record Date).8 August 2018
Redemption amount to be paid to investors holding units on the Redemption Record Date (the Redemption Payment Date).17 August 2018

The dates above are subject to change. Any change will be announced to the market via the ASX.

How will the closure of the Fund affect your Units?As a Holder of Units, you have a choice as to the action you can take in response to this communication. In any event your Units will not be able to be traded on the ASX after the Last Trading Day. You should consult your financial adviser to ensure that you understand the implications, including the costs and risks, of your choice. As a Holder of Units, you may either;

sell your Units on the ASX in the ordinary way via your broker prior to the close of trading on the Last Trading Day. ETFS expects that the market makers will continue to make a market for Units until 6 August 2018, or hold your Units until the Redemption and receive the proceeds of the compulsory redemption of your Units after that time.

How and when will I receive payment following the Redemption?

Following the Redemption, the assets of the Fund will be sold and the proceeds will be distributed to Holders. If you hold Units on the date of the Redemption, the proceeds of your redemption are expected to be paid to your nominated bank account on the Redemption Payment Date. ETFS will bear the costs associated with selling the assets of the Fund and the Redemption. These costs will not be borne by Holders. To verify or amend your nominated bank account, please contact Computershare Investor Services Pty Limited (the Registrar) either by phone on 1300 382 656 (or on +61 3 9415 4339 if calling from outside Australia) or by registering for an ‘Investor Centre’ account at www-au.computershare.com/investor.