Investment objective
The ETC is designed to offer investors a cost-effective way to access the gold market as they track the spot price of physical gold. The ETC provides investment exposure to physical gold by holding physical London Bullion Market Association (LBMA) gold with HSBC, the gold Custodian. The ETC securities are valued based on the LBMA gold price.
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The gold price fluctuates daily and the value of gold is driven by various factors including its rarity, use in industrial processes and its use as an investment commodity. Pricing of precious metals can be impacted by fundamental issues of supply and demand, political and economic situations (especially in precious metal producing countries) and natural disasters. These factors may all affect the value of your investment. The ETC securities are denominated in US dollars, the ETC’s base currency. Redemption and Dealing Shares: You can purchase or sell share in the ETC on any business day as further specified in the prospectus.
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The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
This website is a Marketing Communication and does not qualify as an investment recommendation.
About this fund
The SMO Physical Gold ETCs are designed to provide precise and efficient exposure to gold. They are backed by gold from a small number of mines that meet the highest environmental, social and governance standards, with full traceability across the supply chain. The mines are selected, screened and monitored by Single Mine Origin (SMO) Limited, an independent company set up to provide a trusted standard for responsibly sourced gold.
About SMO Gold
The ETCs are designed to track the LBMA Gold Price, a recognised benchmark for gold, quoted in US dollars per troy ounce and administered independently by ICE Benchmark Administration (IBA).
Investment process
The ETCs are debt securities backed by SMO Gold bars. The bars are held in secured allocated accounts in the name of the Issuer and stored in a secure vault with the Custodian. A list of the bars held is published daily at jhetf.com. The gold is valued daily at the LBMA Gold Price. Following the issue of new securities, the ETC may be partially backed by non-SMO Gold. This will meet LBMA Good Delivery standards (including LBMA’s Responsible Gold Guidance) and will be exchanged as quickly as possible for SMO Gold.
Performance scenarios
| Recommended hold period: 5 years Investment: 10,000 $ |
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| Scenarios | If you exit after 1 year | If you exit after 3 years | If you exit after the 5-year recommended holding period | |
| Stress Scenario | What you might get back after costs | 4,281.67 $ | 5,170.87 $ | 4,164.62 $ |
| Average Return each year | -57.18% | -19.74% | -16.07% | |
| Unfavourable Scenario | What you might get back after costs | 9,098.16 $ | 9,527.32 $ | 11,822.68 $ |
| Average Return each year | -9.02% | -1.60% | 3.41% | |
| Moderate Scenario | What you might get back after costs | 10,762.20 $ | 12,535.84 $ | 14,691.82 $ |
| Average Return each year | 7.62% | 7.83% | 8.00% | |
| Favourable Scenario | What you might get back after costs | 14,091.71 $ | 17,646.90 $ | 18,070.63 $ |
| Average Return each year | 40.92% | 20.84% | 12.56% | |