Letter from the CEO - ETFS Physical Gold Hits $1 Billion in FUM
Sep 10, 2019
I’m delighted to let you know that, as of early September, ETFS Physical GOLD (ASX code: GOLD), our flagship fund, built by our Australian chairman and owner Graham Tuckwell in 2003, reached the revered goal of $1 billion of funds under management. This milestone is important for three reasons that I thought I would share with you.
Firstly, it marks the development of Australian investors’ understanding of the importance of gold in a portfolio. For many years, and still now, most Australians think of miners when they think of investing in gold, but not gold itself. The reality is that gold has many specific benefits not captured by gold miners and these are being borne out right now. With deepening concerns over trade wars, Brexit and the long term effect of huge government debts, this is likely to create new rounds of quantitative easing (equals money printing) devaluing the worth of fiat currencies (AUD, USD, EUR, GBP etc.)
Secondly, it marks the rapid development in the use of ETFs in Australia amongst investors. Long the domain of stock pickers and active managers, investors are now embracing ETFs as their preferred way to take exposure to many different types of opportunity. Never before has it been so easy to take access to international regions and themes, providing a breadth of choice not available before. All this at typically half the price of the cost of an active manager.
Lastly, it underlines the quality of the team here at ETF Securities Australia and our commitment to the investor community. We are “The intelligent alternative” for many ETF investors, providing access to funds that cover yield, commodities, international and, via our famous “Future Present” range, disruption.
GOLD reaching $1 billion is one of the most important first steps in this journey and we thank you all for helping us achieve this.
(CEO, ETF Securities Australia)