Our commitment towards responsible gold

The LBMA’s Responsible Gold Guidance1 came into effect in 2012 and requires strict adherence to rules around the provenance of gold. It was set up to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering and to combat terrorist financing practices. While much of the gold mined prior to 2012 is likely to have also complied with the Responsible Gold Guidance, compliance was not mandatory.

 

Since we can only be certain that gold mined after 2012 has been sourced in compliance with the LBMA’s Responsible Gold Guidance, we have instructed J.P. Morgan Chase Bank to minimise the Invesco Physical Gold ETC’s exposure to gold mined prior to this date. As custodian of the ETC, they will seek to reduce the amount of pre-2012 gold through the usual creation-redemption process. This means on days when there is a greater monetary value being sold by current investors than there is being invested (so that certificates in the ETC are redeemed and the equivalent amount of gold sold), the custodian will try to use pre-2012 gold bars to raise proceeds to meet those needs. On days when there is more being invested than being sold (so that gold must be bought and new certificates created), the custodian will use the investments to purchase only post-2012 gold bars.

 

The latest indication provided by the custodian2 shows that 100% of gold bars held in the segregated account of the Invesco Physical Gold ETC are minted post-2012. We will continue to work to only keep bullion gold, mined after 2012, to ensure compliance with the highest ethical standards.

 

London Bullion Market Association (“LBMA”) is the primary standard-setting body for the global wholesale market for gold and other precious metals

Provided by J.P. Morgan Chase Bank, 5th August 2020

Investment risks

The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

If the issuer cannot pay the specified return, the precious metal will be used to repay investors. Investors will have no claim on the other assets of the Issuer.

Instruments providing exposure to commodities are generally considered to be high risk which means there is a greater risk of large fluctuations in the value of the instrument.

Important information

This document contains information that is for discussion purposes only and is intended only for investors in the UK.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
All investment decisions must be based only on the most up to date legal offering documents. The legal offering documents (Key Information Document (KID), Base Prospectus and annual & semi-annual reports) are available free of charge at our website etf.invesco.com and from the issuers.

This document should not be considered financial advice. Persons interested in acquiring the product should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. 

Communicated by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, United Kingdom. Invesco Asset Management Limited is authorised and regulated by the Financial Conduct Authority.

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