HANetf launches the world’s first responsibly sourced currency hedged physical gold ETC range with The Royal Mint

• HANetf and The Royal Mint have partnered to launch three currency hedged physical gold ETCs.
• The new ETCs provide exposure to physical gold custodied by The Royal Mint, with pound sterling (GBP) and euro (EUR) hedging options, and a Swiss franc (CHF) hedging option coming soon.
• Each of the ETCs is 100% backed by London Bullion Market Association (LBMA) post-2019 responsibly sourced Good Delivery bars, and a growing number of post-2022 bars.
• Uniquely, a portion of the bars custodied are from verifiable recycled sources. Recycled gold is over 90% less carbon intensive than mined gold.
• None of the gold custodied will be bars of Russian origin.
• These are the second, third, and fourth financial products launched by HANetf in partnership with The Royal Mint, following the launch of The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU), which recently surpassed the $1 billion AUM milestone.

The three new ETCs follow The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU), HANetf’s first listed financial product in partnership with The Royal Mint. RMAU has surpassed the $1 billion assets under management (AUM) milestone.

Gold is quoted in USD, which means most gold products are providing exposure to gold in USD unless they are hedged. An investor who only wants to benefit from the gold price rising and has no – or a negative – outlook on US-Dollar, needs to find a way to hedge their US-Dollar exposure. In currency hedged products, the US-Dollar positions cancel each other out. This leaves the investor solely exposed to gold prices, the desired outcome.

Each of the ETCs will be backed by physical gold bars custodied by The Royal Mint at their highly secure vault in Llantrisant, Wales. This means the gold is held outside the London banking systems, providing a potentially attractive option for investors seeking real diversification in their gold custody arrangements, compared to most gold ETPs which custody at banks in or near London.

The Royal Mint is committed to the highest standards of sustainability across their whole business, and the three new ETCs will meet these high standards. 100% of the gold custodied will be London Bullion Market Association (LBMA) post-2019 responsibly sourced good delivery bars, with a growing number of post-2022 bars. Crucially, none of the ETCs will have exposure to gold of Russian origins.

Uniquely, a portion of the gold backing the ETCs will be 100% recycled gold bars, with the aim of increasing the proportion over time. The Royal Mint’s first ETC, The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU), introduced recycled gold in 2022 – now, over half the bars custodied are 100% recycled gold. These bars are independently audited twice yearly. Recycled gold bars are over 90% less carbon intensive than mined gold.

Moreover, gold within any of the ETCs can be redeemed for physical gold from The Royal Mint, in the form of a wide range of gold bars and coins. The range of coins and bars offered is unparalleled, reflecting the broad range covered by The Royal Mint in its core business including the Sovereign and Britannia ranges.

The FX hedging will occur daily, with the day’s FX profit and loss being converted into gold, minimising FX hedge counterparty risk.

Andrew Dickey, Divisional Director of Precious Metals at The Royal Mint, comments:

“The Royal Mint continues to build its reputation as a trusted name in the UK and across global markets, solidifying its leadership in precious metals investment. The Royal Mint’s Responsibly Sourced Physical Gold ETC has performed exceptionally, with assets under management (AUM) rising to $1 billion, achieving almost 1% market share during its short lifespan.

“This impressive growth is a testament not only to the fund’s core sustainability profile but also reflects to The Royal Mint’s broader sustainability initiatives and robust vaulting arrangements, as the fund’s trusted custodian.

“We have listened to what our investors want and we’re taking some exciting steps to expand our financial products offering, launching three new currency-hedged physical gold ETCs through HANetf. As precious metals investing is increasingly at the forefront of people’s minds, The Royal Mint remains committed to providing seamless and reliable investment options, backed by its trusted legacy.”

Hector McNeil, Co-Founder and Co-CEO of HANetf, comments:

“We are delighted to be launching three responsibly sourced FX hedged gold ETCs with our longtime partner, The Royal Mint. The launch of The Royal Mint’s first listed financial product, The Royal Mint Responsibly Sourced Physical Gold ETC, back in 2020, was a groundbreaking moment. We have now launched four ETCs together, and we look forward to continuing the partnership.

“Investors are increasingly looking for ways to access gold safely, and securely. The Royal Mint has been the official maker of coins for the United Kingdom for over a millennium, so it is difficult to think of a more trusted custodian. All the gold is stored in The Royal Mint’s highly secure vault in Wales, guarded by trained security staff 24/7, 365 days a year, ensuring that the physical gold is safe, and held outside the London banking system.

“Moreover, the sustainability of gold has been increasingly in focus, and The Royal Mint’s sustainability credentials make the company a leader in the space. All the gold is LBMA post-2019 responsibly sourced good delivery bars, with a biannual audit published to ensure full transparency.

“The FX hedged ETCs provide investors with an option to access physical gold, securely stored, and sustainably sourced – while minimising FX hedge counterparty risk.”