Benefits of investing in the Global X Physical Gold ETF

Why GOLD?

• Diversification: Gold is often uncorrelated with other asset classes and can be used to improve portfolio risk/return characteristics and to hedge against event risk.

• Real money: Gold has traditionally been used as a store of value and a hedge against inflation.

• Secure: GOLD holds fully allocated gold bars with HSBC Bank plc in London. The vault is audited twice annually to ensure that the bullion meets the required specifications.

• Redeemable: Holders who maintain an unallocated bullion account are able to redeem GOLD Securities for gold directly with the Issuer.

• Liquid: GOLD invests only in physical gold bullion and is therefore extremely liquid.
• Transparent: The metal entitlement per unit and a full list of the specifications of each gold bar are made publicly available daily.

Capital Growth& Preservations with small allocation

Fund overview / Investment Objective

GOLD is designed to offer investors a simple, cost-efficient and secure way to access gold by providing a return equivalent to the movements in the gold spot price less the applicable management fee.

GOLD is backed by physical allocated gold held by HSBC Bank plc (the custodian). Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated. 

GOLD is an Exchange Traded Commodity ("ETC") that can be created and redeemed on demand (by market makers). It trades on the ASX just like an equity, is settled and held in ordinary brokerage accounts, and its pricing and tracking operates similarly to an Exchange Traded Fund. No new securities can be issued until the bullion is delivered to the Custodian's vault. There is no credit risk within this product.

About the Pricing

Each individual ETFS Physical Gold Security has an effective entitlement to gold, and that entitlement changes daily to reflect the accrual of the management fee.

Authorised participants create and redeem Global X Physical Gold Securities by delivering or receiving gold that conforms to LBMA standards.

Global X Physical Gold Securities are traded on exchange with a price that is based on the spot price of gold multiplied by the applicable metal entitlement in Australian dollars.

How we invest your money

Components of a Metal Security

A Metal Security is comprised of a Metal Share of nominal value plus a Beneficial Interest in the relevant amount of Bullion (the Metal Entitlement), which Bullion is held in a Separate Trust for each Holder.

A Metal Share is a redeemable preference share with a nominal value of 1/1000th of 1 cent which carries with it a right to the Metal Entitlement applicable to that class of share. Although a Metal Share in itself has no economic value, it exists in order to provide a class of "share which is tradeable on the ASX.

The economic value of each Metal Security lies in the Metal Entitlement which is carried around with each Metal Share. Whenever there is a transfer in ownership of a Metal Share, there is a corresponding transfer in the ownership of the Metal Entitlement applicable to that Metal Share.

Pursuant to the Trust Deed, a Separate Trust is established for each Holder of a Metal Share and the Metal Entitlement is held by the Trustee on trust for each such Holder. Each Holder will therefore hold:

• A Metal Share issued by the Company; and

• a beneficial interest in a Separate Trust that owns the relevant amount of Bullion (being the Metal Entitlement).

Metal Entitlement

There will be a separate Metal Entitlement for each class of Metal Security, which as at 16/09/2022 was:

0.009287504 fine troy oz.

The Metal Entitlement for each class of Metal Security will be calculated daily by the Company, to nine places of decimals with 0.0000000005 troy ounces (or fine troy ounces in the case of gold) rounded upwards, and will be published on the parent company's website and will also be available through the ASX electronic news announcement system.

The Management Fee may be varied by the Company at any time, but in the case of an increase, such variation may only be made after giving 30 days' prior notice to all Holders (to be released through the CAP).