Termination of the ETFS Physical Singapore Gold ETF
May 29, 2018
ETFS Management (AUS) Limited ACN 150 433 828 (ETFS), as responsible entity for the ETFS Physical Singapore Gold ETF (ZGOL), a class of Metal Interests of the ETFS Physical Precious Metals Scheme (Fund) has resolved to terminate the Fund (Termination), effective after the close of trading on 22 June 2018 (Last Trading Day). As a result of the Termination, Metal Interests 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 wound up in accordance with Part 5C.9 of the Corporations Act and the Fund's constitution.
In May 2018, Australia and New Zealand Banking Group Limited (ANZ), as Custodian of the Fund, notified ETFS that it would be exiting the Bullion custody business and would be terminating the Custody Agreements with the Fund. Following that notification, the Responsible Entity undertook a review of the Fund and determined that it would be in the best interests of Holders to terminate the Fund.ETFS has decided to provide Holders with 17 trading days’ notice of its intention to terminate the Fund. This communication outlines the steps that will be taken to affect the Termination of the Fund and seeks to inform you as to what action you may take.
Set out below are a summary of the key dates relating to the Termination.
|Dispatch of this letter||29 May 2018|
|Last day for dealings in the Metal Interests in the Fund and last day for redemption of Metal Interests in the Fund by Authorised Participants (the Last Trading Day)||22 June 2018|
|The date at which the final Termination of the Fund will occur.||22 June 2018|
|The date at which an investor needs to be recorded as the beneficial owner of Metal Interests in the Fund in the Clearing House Electronic Subregister System (CHESS) (the Termination Record Date).||26 June 2018|
|Redemption amount to be paid to investors holding Metal Interests on the Final Redemption Record Date (the Termination Payment Date).||29 June 2018|
The dates above are subject to change. Any change will be announced to the market via the ASX. How will the termination of the Fund affect your Metal Interests?As a Holder of Metal Interests, you have several choices as to the action you can take in response to this communication. In any event your Metal Interests 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 Metal Interests, you may either;
sell your Metal Interests 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 Metal Interests until 22 June 2018,
redeem your Metal Interests with the Issuer in the ordinary way prior to the close of trading on the Last Trading Day, or
hold your Metal Interests until the Termination of the Fund and receive a pro-rata share of the proceeds of winding up.If you choose to sell your Metal Interests on the ASX, you will incur brokerage costs and any spread costs as you normally would when transacting on the ASX. Similarly, if you choose to redeem your Metal Interests with the Issuer, you will incur the costs associated with a redemption as set out in section 6.4 of the Product Disclosure Statement (PDS) for the Fund. Holders considering to sell or redeem their Metal Interests are able to have regard to the prevailing price of gold and their Metal Interests at the relevant time. By contrast, where you hold your Metal Interests until Termination, ETFS will bear all costs associated with the winding up and your share of the proceeds should be equal to the net asset value per Metal Interest of the Fund on the day the assets of the Fund are sold (which is expected to be the Last Trading Day), multiplied by the number of Metal Interests you hold. Holders should be aware that the price of gold may change and the net asset value per Metal Interest of the Fund may change between the date of this communication and the completion of Termination.For further information in relation to the Fund or how to sell or redeem your Metal Interests, please refer to the PDS. A copy of the PDS is available at www.etfsecurities.com.au or from ETFS.
How and when will I receive payment following the Termination? Following Termination, the assets of the Fund will be sold and the proceeds of winding up will be distributed to Holders. If you hold Metal Interests on the Termination Record Date, you will be entitled to receive a pro-rata share of the proceeds of winding up, which is expected to be paid to your nominated bank account on the Termination Payment Date. ETFS will bear the costs associated with selling the assets of the Fund and winding up the fund. These costs will not be borne by Holders.