time to look at india article
TRANSCRIPT
Time to look at India_articleIs it time to look at India
again?
its efforts to the future growth of the nation, with key emphasis on its existing plans for infrastruc- ture.
A large and diverse nation, both in population and in region, India’s future is dominated by three key growth drivers.
Infrastructure investment
For many emerging nations, infrastructure can be an important tool for economic growth as it offers short term benefits such as employment, and longer term benefits in the form of useful infrastructure to improve access and lifestyle for a population, such as via roadways or electricity. It also builds out appeal to international investors who see viable infrastructure to support production or trade activity. India is no exception to this path – in fact, China’s accelerated growth in the past has largely been attributed to its infrastructure focus and it has since needed to transition to a services-led economy.
Global challenges may just be a temporary setback for India, which is forging ahead with growth plans. Investors considering emerging markets for diversification are often attracted to the Asian region, due to the well documented growing middle-class and economic prospects that build a growth case for this region. While China has been a long-held investment darling, India’s star is on the rise and many nations, including Australia, are seeking to forge closer trade partnerships.
The COVID-19 pandemic has been significant globally, not just from a health perspective but also economically. India was initially hard-hit, implementing one of the harshest and most extensive lockdowns globally¹. Cases appear to have peaked in India in September and there are now signs of economic recovery as seen in indica- tors such as industrial output and energy con- sumption². The Indian government has returned
1
Driving the Indian economy
2
The Indian government has also recently passed updated labour codes to simplify laws and compliance processes as well as incorporating a social security fund for gig and platform workers9. These reforms are anticipated to support continued ease of doing business in India.
Monetary policy in the form of interest rates set by the Reserve Bank of India (RBI) has further supported business investment. The RBI lowered interest rates during the COVID-19 pandemic to support business lending activity. This is likely to remain accommodative for some period to support ongoing recovery¹0.
The Indian government has also been active in fiscal spending to support the ongoing growth of the country by reducing poverty. While many programs have existed for some time, the continuation has also been a vital part of recovery from the COVID-19 pandemic.
Some examples include:
Neelkanth Mishra, Managing Director, Indian strategist and Co-Head of Equity Strategy for Asia Pacific at Credit Suisse, says “the inclination of the government is to do investment spending. There is the national infrastructure pipeline, it's a set of projects. For example, a lot of projects in roads, quite a few projects in railways, power distribution, renewable energy generation, water and sanitation and gas pipelines. This will mean a remarkable increase in the number of households with piped gas connections. These are things that most countries have had for a long time, but in India, we didn't. It is still a cylinder-based distribu- tion. These gas pipelines are growing. There's a large set of projects which can be accelerated.”
As part of this program, the Indian government has committed to USD 1.4tr infrastructure invest- ment by 2025³. There is also a strong focus on climate and renewables, with the Ministry of Petroleum & Natural Gas announcing in Septem- ber 2020 that it aims to operate 50% of fuel stations using solar power within five years4. India has also partnered with Japan via the India-Japan Coordination Forum for Development of North- east for projects in India’s Northeast states5.
A range of listed companies in India stand to benefit from the increased infrastructure invest- ment. One example is Larsen & Toubro with services extending from engineering, construc- tion and manufacturing to technology and finan- cial services. It has been awarded a range of gov- ernment infrastructure contracts, most recently for rail works between Delhi-Meerut and a surface-based water supply project to Patiala town6.
In the wake of the COVID-19 pandemic, the Indian government has forged ahead with infrastructure projects to support the recovery of the country.
Reform and fiscal policies
India has historically been complicated for busi- ness operations, but government reforms have assisted in opening the country to domestic and foreign business investment.
Some examples of these reforms include:
The introduction of GST in 2017 which cen- tralised 17 indirect taxes. This made the Indian goods market more competitive and reduced costs of doing business7.
Corporate reforms covering reduced registra- tion fees, stricter requirements before commencement of business operations, improved insolvency processes, an integrated general incorporation form and enabling post-clearance audits and enhanced electronic trade submissions to enhance cross-border trade8.
The Mahatma Gandhi National Rural Employ- ment Guarantee Act (NREGA) which guaran- tees 100 days of unskilled manual labour per year on public works projects at approximately 200 rupees a day¹¹.
Pradhan Mantri Jan Dhan Yojana (Prime Minister’s People’s Wealth Scheme) which aims to offer affordable access to financial services such as basic savings and deposit accounts or insurance¹².
While foreign companies stand to benefit from moving into the Indian market as business
3
conditions ease, domestic companies are also capitalising on greater cross-border activity. One example is Infosys, India’s second largest provid- er of consulting and IT services across the globe with a staff headcount of more than 240,000 in nearly 50 countries¹³. Infosys’ proprietary soft- ware Finacle is considered an industry-leading program and used globally¹4.
Consumption
India is expected to benefit from a growing middle-class across Asia and the accompanying economic rise in consumption. It is expected to see the percentage of households in poverty drop from 15% to 5% by 2030¹5.
The movement of people to higher financial status represents a huge opportunity. It is an audience with the ability to afford more than just the basics and demand better quality goods and services. At a base level, manufacturers of higher quality consumer staples can benefit from this demand. For example, a middle-class audience is more likely to purchase well-known brands or consider organic foods over mass-grown options. The opportunity extends across industries. A middle-class audience has excess cash to consider travel, education, healthcare, medical needs, luxury goods and technology. Universities and schools worldwide are recognising the current interest in accessing their campuses, with international education worth AUD 38bn to the Australian economy¹6. Luxury consumer discre- tionary brands from houses like LVMH are already reaping the benefits¹7, while healthcare and vita- min companies like Blackmores are discovering consumers who are focused on their health needs and have the finances to pay for it¹8.
While foreign companies have an opportunity to access this trend, domestic based companies have cultural and physical base advantages in reaching this audience. Hindustan Unilever is one such example. The largest consumer staples company in India, it has direct coverage of 3.5 million outlets and around 88 million consumers within India¹9. Another example is India’s largest listed company by market capitalisation, Reliance Industries.
Reliance Industries spans three segments: oil and gas, telecommunications and retail (consumer electrics, fashion and groceries). It has been working aggressively to expand its consumer activity. On the telecommunications side, it offered users free internet calling for one year and invested heavily in data services and capacity which has driven it to more than 30% market share in the mobile space²0. On the retail side, it has recently purchased Future Group²¹ – the first to launch hyper stores in India – and its WhatsApp grocery order system called JioMart increased in popularity during lockdown²².
On the more discretionary end, the market for personal vehicles in India is also on the rise. Maruti Suzuki is the largest passenger car com- pany in India and has 50% domestic market share²³. The COVID-19 pandemic has supported increased interest in personal vehicle ownership, with 57% of Indian consumers considering purchasing a car in 2020 compared to the global average of 35%²4.
Investors can consider investing in India from a few perspectives.
Using an investment in India in a portfolio
Regional diversification
Diversification is used by many investors to manage risks specific to countries and regions. Spreading investments across a range of regions, such as India, can assist with this as well as offering exposure to different economic drivers compared to Australia or the US. From this perspective, it could be considered part of the core investments within a portfolio.
A thematic investment
Investors may consider an investment in India as a form of exposure to the broader trend for the growth of the middle-class across Asia. This may see the investment form part of satellite portion of a portfolio to tilt towards thematic investments.
1.
2.
It can be difficult for investors to directly access the Indian market for listed shares. From this perspective, investors could consider other options such as:
For more information on NDIA, please speak to ETF Securities.
ETFS Reliance India Nifty 50 ETF (ASX Code: NDIA) is the only fund in Australia that offers exposure to the Indian economy via its benchmark index, the NSE Nifty50 Index. NDIA includes exposure to the 50 largest and most liquid companies listed on the National Stock Exchange of India (NSE) and represents more than 60% of the market capitalisation of India.
How to invest in India
4
Trading Phone +61 2 8311 3483 Email: [email protected]
[1] https://qz.com/india/1828915/indias-coronavirus-lock- down-harsher-than-china-italy-pakistan/ [2] https://www.businesstoday.in/current/economy-politics/r- bi-rate-cut-economic-recovery-covid-lockdown-crisis/story/422035.html [3] Source: India 2030: exploring the Future; National Infrastructure Pipeline [4] https://www.ibef.org/industry/infrastructure-sector-india.aspx [5] https://www.ibef.org/industry/infrastructure-sector-india.aspx [6] https://eip.lntecc.com/homepage/common/p372.htm [7] https://www.makeinindia.com/five-rea- sons-why-gst-is-good-for-business [8] https://www.doingbusiness.org/en/reforms/overview/economy/india [9] https://economictimes.indiatimes.com/news/economy/policy/la- bour-reforms-intend-to-put-india-among-top-10-nations-in-ease-of-doing-b usiness/articleshow/78257939.cms?from=mdr [10] https://www.businesstoday.in/current/economy-politics/r- bi-rate-cut-economic-recovery-covid-lockdown-crisis/story/422035.html [11] https://www.nrega.nic.in/netnrega/mgnrega_new/Nrega_home.aspx [12] https://www.pmjdy.gov.in/scheme [13] https://www.infosys.com/about.html [14] https://www.edgeverve.com/finacle/australia/ [15] http://www3.weforum.org/docs/WEF_Future_of_Consumption_- Fast-Growth_Consumers_markets_India_report_2019.pdf [16] https://www.smh.com.au/politics/federal/coronavirus-af- fects-a-third-of-private-tertiary-education-students-20200217-p541o2.htm l [17] https://www.lvmh.com/investors/profile/key-figures/#groupe [18] https://www.blackmores.com.au/about-us/investor-centre/annu- al-and-half-year-reports [19] https://www.hul.co.in/investor-relations/ [20] https://www.bloombergquint.com/business/jio-becomes-first-tel- co-to-cross-40-crore-subscribers-mark-trai-data [21] https://www.moneycontrol.com/news/business/reliance-retail-fu- ture-group-deal-how-will-it-benefit-rils-consumer-facing-businesses-57704 31.html#:~:text=Reliance%20Retail%20is%20by%20far%20the%20largest %20retailer,chief%20executive%20of%20retail%20consultancy%20firm%2 0Third%20Eyesight. [22] https://www.brand-experts.com/brand-best-practice/covid-19-im- pact-reliance-industries/ [23] https://timesofindia.indiatimes.com/auto/news/maruti-suzu- kis-mpv-market-share-touches-50-as-xl6-completes-a-year/articleshow/7 7714792.cms [24] https://auto.economictimes.indiatimes.com/news/passenger-vehi- cle/cars/almost-57-indian-consumers-willing-to-purchase-cars-in-2020-su rvey/75672140
Growth opportunity
Investors looking for long-term growth opportunities could consider India within growth allocations in either the core or satellite of a portfolio given its prospects and activity.
3.
Direct investment in companies with business operations in India listed in Australia or inter- nationally.
Actively or passively managed funds which focus on Asia, themes relevant to Asia or India or specifically focus on India.
SNAPSHOT
Management Cost (%pa) 0.85 Expense Recovery (%pa) 0.15 Rebalance Frequency Semi-annual
W-8 BEN Form Required No
Distribution Frequency Annual
ETFS Management (AUS) Limited (AFSL 466778) (“ETFS”), is the responsible entity and issuer of units in the ETFS Reliance India Nifty 50 ETF (ASX Code: NDIA) (ARSN 628 037 856) (“Fund”). The PDS contains all of the details of the offer of units in the Fund. Any investment decision should only be considered after reading the relevant offer document in full.
ETFS Reliance India Nifty 50 ETF offered by ETFS Management (AUS) Limited or its affiliates is not sponsored, endorsed, sold or promoted by NSE INDICES LTD and its affiliates. NSE INDICES LTD and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of ETFS Reliance India Nifty50 ETF or any member of the public regarding the advisability of investing in securities generally or in the ETFS Reliance India Nifty 50 ETF linked to the NSE Nifty50 Index or particularly in the ability of the NSE Nifty50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the NSE Nifty50 Index in the Product Disclosure Statement.
This document is communicated by ETFS. This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments and any investments should only be made on the basis of the relevant product disclosure statement which should be considered by any potential investor including any risks identified therein. This document does not take into account your personal needs and financial circumstances. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Although we use reasonable efforts to obtain reliable, comprehensive information, we make no representation and give no warranty that it is accurate or complete.
Investments in any product issued by ETFS are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither ETFS, ETFS Capital Limited nor any other member of the ETFS Capital Group guarantees the performance of any products issued by ETFS or the repayment of capital or any particular rate of return therefrom.
The value or return of an investment will fluctuate and investor may lose some or all of their investment. Past performance is not an indication of future performance.
Information current as at 18 November 2020.
5
its efforts to the future growth of the nation, with key emphasis on its existing plans for infrastruc- ture.
A large and diverse nation, both in population and in region, India’s future is dominated by three key growth drivers.
Infrastructure investment
For many emerging nations, infrastructure can be an important tool for economic growth as it offers short term benefits such as employment, and longer term benefits in the form of useful infrastructure to improve access and lifestyle for a population, such as via roadways or electricity. It also builds out appeal to international investors who see viable infrastructure to support production or trade activity. India is no exception to this path – in fact, China’s accelerated growth in the past has largely been attributed to its infrastructure focus and it has since needed to transition to a services-led economy.
Global challenges may just be a temporary setback for India, which is forging ahead with growth plans. Investors considering emerging markets for diversification are often attracted to the Asian region, due to the well documented growing middle-class and economic prospects that build a growth case for this region. While China has been a long-held investment darling, India’s star is on the rise and many nations, including Australia, are seeking to forge closer trade partnerships.
The COVID-19 pandemic has been significant globally, not just from a health perspective but also economically. India was initially hard-hit, implementing one of the harshest and most extensive lockdowns globally¹. Cases appear to have peaked in India in September and there are now signs of economic recovery as seen in indica- tors such as industrial output and energy con- sumption². The Indian government has returned
1
Driving the Indian economy
2
The Indian government has also recently passed updated labour codes to simplify laws and compliance processes as well as incorporating a social security fund for gig and platform workers9. These reforms are anticipated to support continued ease of doing business in India.
Monetary policy in the form of interest rates set by the Reserve Bank of India (RBI) has further supported business investment. The RBI lowered interest rates during the COVID-19 pandemic to support business lending activity. This is likely to remain accommodative for some period to support ongoing recovery¹0.
The Indian government has also been active in fiscal spending to support the ongoing growth of the country by reducing poverty. While many programs have existed for some time, the continuation has also been a vital part of recovery from the COVID-19 pandemic.
Some examples include:
Neelkanth Mishra, Managing Director, Indian strategist and Co-Head of Equity Strategy for Asia Pacific at Credit Suisse, says “the inclination of the government is to do investment spending. There is the national infrastructure pipeline, it's a set of projects. For example, a lot of projects in roads, quite a few projects in railways, power distribution, renewable energy generation, water and sanitation and gas pipelines. This will mean a remarkable increase in the number of households with piped gas connections. These are things that most countries have had for a long time, but in India, we didn't. It is still a cylinder-based distribu- tion. These gas pipelines are growing. There's a large set of projects which can be accelerated.”
As part of this program, the Indian government has committed to USD 1.4tr infrastructure invest- ment by 2025³. There is also a strong focus on climate and renewables, with the Ministry of Petroleum & Natural Gas announcing in Septem- ber 2020 that it aims to operate 50% of fuel stations using solar power within five years4. India has also partnered with Japan via the India-Japan Coordination Forum for Development of North- east for projects in India’s Northeast states5.
A range of listed companies in India stand to benefit from the increased infrastructure invest- ment. One example is Larsen & Toubro with services extending from engineering, construc- tion and manufacturing to technology and finan- cial services. It has been awarded a range of gov- ernment infrastructure contracts, most recently for rail works between Delhi-Meerut and a surface-based water supply project to Patiala town6.
In the wake of the COVID-19 pandemic, the Indian government has forged ahead with infrastructure projects to support the recovery of the country.
Reform and fiscal policies
India has historically been complicated for busi- ness operations, but government reforms have assisted in opening the country to domestic and foreign business investment.
Some examples of these reforms include:
The introduction of GST in 2017 which cen- tralised 17 indirect taxes. This made the Indian goods market more competitive and reduced costs of doing business7.
Corporate reforms covering reduced registra- tion fees, stricter requirements before commencement of business operations, improved insolvency processes, an integrated general incorporation form and enabling post-clearance audits and enhanced electronic trade submissions to enhance cross-border trade8.
The Mahatma Gandhi National Rural Employ- ment Guarantee Act (NREGA) which guaran- tees 100 days of unskilled manual labour per year on public works projects at approximately 200 rupees a day¹¹.
Pradhan Mantri Jan Dhan Yojana (Prime Minister’s People’s Wealth Scheme) which aims to offer affordable access to financial services such as basic savings and deposit accounts or insurance¹².
While foreign companies stand to benefit from moving into the Indian market as business
3
conditions ease, domestic companies are also capitalising on greater cross-border activity. One example is Infosys, India’s second largest provid- er of consulting and IT services across the globe with a staff headcount of more than 240,000 in nearly 50 countries¹³. Infosys’ proprietary soft- ware Finacle is considered an industry-leading program and used globally¹4.
Consumption
India is expected to benefit from a growing middle-class across Asia and the accompanying economic rise in consumption. It is expected to see the percentage of households in poverty drop from 15% to 5% by 2030¹5.
The movement of people to higher financial status represents a huge opportunity. It is an audience with the ability to afford more than just the basics and demand better quality goods and services. At a base level, manufacturers of higher quality consumer staples can benefit from this demand. For example, a middle-class audience is more likely to purchase well-known brands or consider organic foods over mass-grown options. The opportunity extends across industries. A middle-class audience has excess cash to consider travel, education, healthcare, medical needs, luxury goods and technology. Universities and schools worldwide are recognising the current interest in accessing their campuses, with international education worth AUD 38bn to the Australian economy¹6. Luxury consumer discre- tionary brands from houses like LVMH are already reaping the benefits¹7, while healthcare and vita- min companies like Blackmores are discovering consumers who are focused on their health needs and have the finances to pay for it¹8.
While foreign companies have an opportunity to access this trend, domestic based companies have cultural and physical base advantages in reaching this audience. Hindustan Unilever is one such example. The largest consumer staples company in India, it has direct coverage of 3.5 million outlets and around 88 million consumers within India¹9. Another example is India’s largest listed company by market capitalisation, Reliance Industries.
Reliance Industries spans three segments: oil and gas, telecommunications and retail (consumer electrics, fashion and groceries). It has been working aggressively to expand its consumer activity. On the telecommunications side, it offered users free internet calling for one year and invested heavily in data services and capacity which has driven it to more than 30% market share in the mobile space²0. On the retail side, it has recently purchased Future Group²¹ – the first to launch hyper stores in India – and its WhatsApp grocery order system called JioMart increased in popularity during lockdown²².
On the more discretionary end, the market for personal vehicles in India is also on the rise. Maruti Suzuki is the largest passenger car com- pany in India and has 50% domestic market share²³. The COVID-19 pandemic has supported increased interest in personal vehicle ownership, with 57% of Indian consumers considering purchasing a car in 2020 compared to the global average of 35%²4.
Investors can consider investing in India from a few perspectives.
Using an investment in India in a portfolio
Regional diversification
Diversification is used by many investors to manage risks specific to countries and regions. Spreading investments across a range of regions, such as India, can assist with this as well as offering exposure to different economic drivers compared to Australia or the US. From this perspective, it could be considered part of the core investments within a portfolio.
A thematic investment
Investors may consider an investment in India as a form of exposure to the broader trend for the growth of the middle-class across Asia. This may see the investment form part of satellite portion of a portfolio to tilt towards thematic investments.
1.
2.
It can be difficult for investors to directly access the Indian market for listed shares. From this perspective, investors could consider other options such as:
For more information on NDIA, please speak to ETF Securities.
ETFS Reliance India Nifty 50 ETF (ASX Code: NDIA) is the only fund in Australia that offers exposure to the Indian economy via its benchmark index, the NSE Nifty50 Index. NDIA includes exposure to the 50 largest and most liquid companies listed on the National Stock Exchange of India (NSE) and represents more than 60% of the market capitalisation of India.
How to invest in India
4
Trading Phone +61 2 8311 3483 Email: [email protected]
[1] https://qz.com/india/1828915/indias-coronavirus-lock- down-harsher-than-china-italy-pakistan/ [2] https://www.businesstoday.in/current/economy-politics/r- bi-rate-cut-economic-recovery-covid-lockdown-crisis/story/422035.html [3] Source: India 2030: exploring the Future; National Infrastructure Pipeline [4] https://www.ibef.org/industry/infrastructure-sector-india.aspx [5] https://www.ibef.org/industry/infrastructure-sector-india.aspx [6] https://eip.lntecc.com/homepage/common/p372.htm [7] https://www.makeinindia.com/five-rea- sons-why-gst-is-good-for-business [8] https://www.doingbusiness.org/en/reforms/overview/economy/india [9] https://economictimes.indiatimes.com/news/economy/policy/la- bour-reforms-intend-to-put-india-among-top-10-nations-in-ease-of-doing-b usiness/articleshow/78257939.cms?from=mdr [10] https://www.businesstoday.in/current/economy-politics/r- bi-rate-cut-economic-recovery-covid-lockdown-crisis/story/422035.html [11] https://www.nrega.nic.in/netnrega/mgnrega_new/Nrega_home.aspx [12] https://www.pmjdy.gov.in/scheme [13] https://www.infosys.com/about.html [14] https://www.edgeverve.com/finacle/australia/ [15] http://www3.weforum.org/docs/WEF_Future_of_Consumption_- Fast-Growth_Consumers_markets_India_report_2019.pdf [16] https://www.smh.com.au/politics/federal/coronavirus-af- fects-a-third-of-private-tertiary-education-students-20200217-p541o2.htm l [17] https://www.lvmh.com/investors/profile/key-figures/#groupe [18] https://www.blackmores.com.au/about-us/investor-centre/annu- al-and-half-year-reports [19] https://www.hul.co.in/investor-relations/ [20] https://www.bloombergquint.com/business/jio-becomes-first-tel- co-to-cross-40-crore-subscribers-mark-trai-data [21] https://www.moneycontrol.com/news/business/reliance-retail-fu- ture-group-deal-how-will-it-benefit-rils-consumer-facing-businesses-57704 31.html#:~:text=Reliance%20Retail%20is%20by%20far%20the%20largest %20retailer,chief%20executive%20of%20retail%20consultancy%20firm%2 0Third%20Eyesight. [22] https://www.brand-experts.com/brand-best-practice/covid-19-im- pact-reliance-industries/ [23] https://timesofindia.indiatimes.com/auto/news/maruti-suzu- kis-mpv-market-share-touches-50-as-xl6-completes-a-year/articleshow/7 7714792.cms [24] https://auto.economictimes.indiatimes.com/news/passenger-vehi- cle/cars/almost-57-indian-consumers-willing-to-purchase-cars-in-2020-su rvey/75672140
Growth opportunity
Investors looking for long-term growth opportunities could consider India within growth allocations in either the core or satellite of a portfolio given its prospects and activity.
3.
Direct investment in companies with business operations in India listed in Australia or inter- nationally.
Actively or passively managed funds which focus on Asia, themes relevant to Asia or India or specifically focus on India.
SNAPSHOT
Management Cost (%pa) 0.85 Expense Recovery (%pa) 0.15 Rebalance Frequency Semi-annual
W-8 BEN Form Required No
Distribution Frequency Annual
ETFS Management (AUS) Limited (AFSL 466778) (“ETFS”), is the responsible entity and issuer of units in the ETFS Reliance India Nifty 50 ETF (ASX Code: NDIA) (ARSN 628 037 856) (“Fund”). The PDS contains all of the details of the offer of units in the Fund. Any investment decision should only be considered after reading the relevant offer document in full.
ETFS Reliance India Nifty 50 ETF offered by ETFS Management (AUS) Limited or its affiliates is not sponsored, endorsed, sold or promoted by NSE INDICES LTD and its affiliates. NSE INDICES LTD and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of ETFS Reliance India Nifty50 ETF or any member of the public regarding the advisability of investing in securities generally or in the ETFS Reliance India Nifty 50 ETF linked to the NSE Nifty50 Index or particularly in the ability of the NSE Nifty50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the NSE Nifty50 Index in the Product Disclosure Statement.
This document is communicated by ETFS. This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments and any investments should only be made on the basis of the relevant product disclosure statement which should be considered by any potential investor including any risks identified therein. This document does not take into account your personal needs and financial circumstances. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Although we use reasonable efforts to obtain reliable, comprehensive information, we make no representation and give no warranty that it is accurate or complete.
Investments in any product issued by ETFS are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither ETFS, ETFS Capital Limited nor any other member of the ETFS Capital Group guarantees the performance of any products issued by ETFS or the repayment of capital or any particular rate of return therefrom.
The value or return of an investment will fluctuate and investor may lose some or all of their investment. Past performance is not an indication of future performance.
Information current as at 18 November 2020.
5