1676 キンゾクＥＴＦ 2019-09-09 11:00:00
令和元年12月期 中間決算短信（平成31年1月1日～令和元年6月30日） [pdf]
令和元年12月期 中間決算短信（平成31年1月1日～令和元年6月30日）
令和元年9月9日
上場取引所 東京証券取引所
銘柄名 コード番号 連動対象指標 主要投資資産 売買単位
ETFS金上場投資信託 1672 金価格 金 1
ETFS銀上場投資信託 1673 銀価格 銀 10
ETFS白金上場投資信託 1674 白金価格 白金 1
ETFSパラジウム上場投資信託 1675 パラジウム価格 パラジウム 1
ETFS貴金属バスケット 金・銀・白金・
上場投資信託
1676 貴金属バスケット価格（注） パラジウム
1
（注） 貴金属バスケット価格は、金価格、銀価格、白金価格、パラジウム価格に基づいて算出されます。
なお、ETFS貴金属バスケット上場投信の一口当たりの貴金属は、およそ0.04ファイン・トロイ・
オンスの金、およそ1.2トロイ・オンスの銀、およそ0.01トロイ・オンスの白金、およそ0.02ト
ロイ・オンスのパラジウムの合計です。
外 国 投 資 法 人 イーティーエフエス・メタル・セキュリティーズ・リミテッド
代 表 者 名 ヒラリー・ジョーンズ
管 理 会 社 ETFセキュリティーズ・マネジメント・カンパニー・リミテッド
https://www.wisdomtree.eu/en-gb/resource-library/prospectus-and-regulatory-reports#tab-2A942D42-5AA1-4008-9080-3C2DADB050A7
代 表 者 名 ヒラリー・ジョーンズ
問合せ先責任者 ＴＭＩ総合法律事務所 （中川秀宣） TEL 03-6438-5660
有価証券報告書提出予定日 令和元年9月30日提出(予定）
分配金支払い開始予定日 該当なし
Ⅰファンドの運用状況
1. 2019年12月中間決算期の運用状況（平成31年1月1日～令和元年6月30日）
(1)資産内訳 （百万円未満切捨て）
主要投資資産 合計（資産）
構成比
金額 金額 構成比
百万円 ％ 百万円 ％
ETFS金上場投資信託 2019年12月中間決算期 761,824 (100) 761,824 (100)
2018年12月中間決算期 647,315 (100) 647,315 (100)
百万円 ％ 百万円 ％
ETFS銀上場投資信託 2019年12月中間決算期 88,739 (100) 88,739 (100)
2018年12月中間決算期 92,986 (100) 92,986 (100)
百万円 ％ 百万円 ％
ETFS白金上場投資信託 2019年12月中間決算期 31,081 (100) 31,081 (100)
2018年12月中間決算期 29,696 (100) 29,696 (100)
百万円 ％ 百万円 ％
ETFSパラジウム上場投資信託 2019年12月中間決算期 14,141 (100) 14,141 (100)
2018年12月中間決算期 9,668 (100) 9,668 (100)
百万円 ％ 百万円 ％
ETFS貴金属バスケット 2019年12月中間決算期 10,250 (100) 10,250 (100)
上場投資信託 2018年12月中間決算期 10,421 (100) 10,421 (100)
（注） 主要投資資産は、令和元年8月24日午前零時（ロンドン時間2019年8月23日午後4時）現在のものとしてブルームバーグに
よって表示される為替レート（スポット・レート）（1米ドル＝105.39円、1ポンド＝129.306円）に基づいて円換算して
います。(以下同じ)
(2)設定・償還実績
前営業期間末 設定口数 償還口数 当営業期間末
発行済口数 発行済口数
(①) (②) (③) （①+②-③）
千口 千口 千口 千口
ETFS金上場投資信託 2019年12月中間決算期 51,288 22,273 19,817 53,744
2018年12月中間決算期 49,889 5,696 4,296 51,288
千口 千口 千口 千口
ETFS銀上場投資信託 2019年12月中間決算期 57,970 22,777 22,284 58,462
2018年12月中間決算期 61,238 19,152 22,421 57,970
千口 千口 千口 千口
ETFS白金上場投資信託 2019年12月中間決算期 3,461 2,319 2,013 3,767
2018年12月中間決算期 4,091 487 1,117 3,461
千口 千口 千口 千口
ETFSパラジウム上場投資信 2019年12月中間決算期 1,025 333 438 919
託 2018年12月中間決算期 1,309 97 381 1,025
千口 千口 千口 千口
ETFS貴金属バスケット 2019年12月中間決算期 1,071 63 235 899
上場投資信託 2018年12月中間決算期 1,154 34 118 1,071
（注） 上記の設定・償還実績については、営業期末時点の未決済上場投信を含んでいません。
(3)基準価額
売買単位当たり基準価額
総資産 負債（注） 資産 （（③/当営業期間末
発行済口数）×売買単位）
百万円 百万円 百万円 円
2019年12月中間決算期 761,824 - 761,824 14,174
ETFS金上場投資信託
2018年12月中間決算期 647,315 - 647,315 12,620
百万円 百万円 百万円 円
2019年12月中間決算期 88,739 - 88,739 15,178
ETFS銀上場投資信託
2018年12月中間決算期 92,986 - 92,986 16,040
百万円 百万円 百万円 円
ETFS白金上場投資信 2019年12月中間決算期 31,081 - 31,081 8,250
託 29,696 29,696 8,579
2018年12月中間決算期 -
百万円 百万円 百万円 円
ETFSパラジウム上場 2019年12月中間決算期 14,141 - 14,141 153,764
投資信託 2018年12月中間決算期 9,668 - 9,668 94,313
百万円 百万円 百万円 円
ETFS貴金属バスケッ 2019年12月中間決算期 10,250 - 10,250 11,397
ト上場投資信託 2018年12月中間決算期 10,421 - 10,421 9,729
（注1） 売買単位は、金、白金、パラジウム及び貴金属バスケットについては1口、銀については10口となります。
（注2） 貴金属証券の一単位当たりの資産は、証券1単位当たりの基準価額に基づいたものとなっています。証
券1単位当たりの基準価額は、相応する証券1単位当たりの貴金属エンタイトルメントに対応する値決め
による価格を乗じたものとなります。各々の類型の貴金属にかかる証券の裏付けとなっている貴金属ご
との総価値は、相応する証券の残高と等しくなります。このために、純資産額は零となり、総資産額は、
は、証券の裏付けとなる貴金属の総額と等しくなります。
［参考］外国投資法人の財政状態
総資産額 総負債額 投資主持分額
百万円 百万円 百万円
2019年12月中間決算期 1,127,776 1,127,125 651
2018年12月中間決算期 915,324 916,443 -1,119
(注1) 貴金属証券は、期限の定めのない、請求権の限定されている発行体による債務です。全出資口は、親会
社であるイーティーエフ・セキュリティーズ・リミテッドにより保有されています。投資主持分額は、
総資産額から総負債額を差し引いたものです。
2. 会計方針の変更
① 会計基準等の改正に伴う変更 有・無
② ①以外の変更 有・無
ご参考： 会計基準等の改正
(a） 2019年1月1日に発効した基準、修正及び解釈指針：
以下の新規及び改訂後の基準ならびに解釈指針が当年度に適用されましたが、当財務諸表への影響はないと判断しております。
・ 国際財務報告基準(「IFRS」)第16号「リース」
・ IFRS第9号「金融商品」
・ IAS第28号「関連会社及び共同支配企業に対する投資－連結の例外の適用」
・ IAS第19号「従業員給付」
ETFS Metal Securities Limited
Registered No: 95996
Unaudited Interim Financial Report for the
Six Months to 30 June 2019
ETFS Metal Securities Limited
Contents
Directors’ Report 1-3
Condensed Statement of Profit or Loss and Other Comprehensive Income 4
Condensed Statement of Financial Position 5
Condensed Statement of Cash Flows 6
Condensed Statement of Changes in Equity 7
Notes to the Condensed Interim Financial Statements 8-13
www.etfs.wisdomtree.eu
ETFS Metal Securities Limited
Directors’ Report
The directors of ETFS Metal Securities Limited (“MSL” or the “Company”) submit herewith the unaudited
interim financial report and interim financial statements of the Company for the period ended 30 June 2019.
Directors
The names and particulars of the directors of the Company during or since the end of the financial period
are:
Gregory Barton (resigned 15 March 2019)
Hilary Jones
Steven Ross
Peter Ziemba
Directors’ Interests
No director has an interest in the Ordinary Shares of the Company as at the date of this report.
Principal Activities
During the period there were no significant changes in the nature of the Company’s activities.
Review of Operations
As at 30 June 2019, the Company had the following classes of Metal Securities in issue and admitted to
trading on the following exchanges:
London NYSE- Tokyo
Stock Borsa Deutsche Euronext Stock
Exchange Italiana Börse Paris Exchange
ETFS Physical Platinum
ETFS Physical Palladium
ETFS Physical Silver
ETFS Physical Gold
ETFS Physical PM Basket
ETFS Physical Swiss Gold - -
As at 30 June 2019, the fair value of assets under management amounted to USD 10,597.9 million (31
December 2018: USD 8,618.8 million). The Company recognises its assets (“Metal Bullion”) and financial
liabilities (“Metal Securities”) at fair value in the Condensed Statement of Financial Position.
During the period, the Company generated income from creation and redemption fees and management
fees as follows:
30 June 2019 30 June 2018
USD USD
Creation and Redemption Fees 25,896 25,275
Management Fees 17,492,209 16,738,299
Total Fee Income 17,518,105 16,763,574
Under the terms of the service agreement with ETFS Management Company (Jersey) Limited (“ManJer”),
the Company accrued expenses equal to the management fees and creation and redemption fees, which,
after taking into account other operating income and expenses, resulted in an operating result for the period
of USD Nil (30 June 2018: USD Nil).
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ETFS Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
The gain or loss on Metal Securities and Metal Bullion is recognised in the Condensed Statement of Profit or
Loss and Other Comprehensive Income in line with the Company’s accounting policy.
The Company holds Metal Bullion to support the Metal Securities as determined by the Metal Entitlement
(which is calculated in accordance with an agreed formula published in the Prospectus). Metal Bullion is
marked to fair value using the latest quote provided by the London Bullion Market Association (“LBMA”).
The Company has entered into contractual obligations to issue and redeem Metal Securities in exchange for
Metal Bullion as determined by the Metal Entitlement of each class of Metal Security on each trading day.
The Metal Bullion in respect of each creation and redemption is recorded using the price provided by the
LBMA on the transaction date.
IFRS 13 requires the Company to identify the principal market and to utilise the available market price within
that principal market. The directors consider that the stock exchanges where the Metal Securities are listed
to be the principal market and as a result the fair value of the Metal Securities is the on-exchange price as
quoted on those stock exchanges demonstrating active trading. As a result of the difference in valuation
methodology between Metal Bullion and Metal Securities there is a mis-match between accounting values,
and the results of the Company reflect a gain or loss on the difference between the value of the Metal Bullion
(through the application of the price provided by the LBMA against the Metal Entitlement, referred to within
this financial statements as the “Contractual Value”) and the market price of Metal Securities. This gain or
loss would be reversed on a subsequent redemption of the Metal Securities and transfer of the
corresponding Metal Bullion. This is presented in more detail in note 5 to these interim financial statements.
Future Developments
United Kingdom's (“UK’s”) withdrawal from the European Union (“EU”)
The process for the UK's withdrawal from the EU is still ongoing, the UK’s future relationship with the EU is
still uncertain and the renegotiations of treaties and agreements, together with legislation changes, have yet
to be completed.
The Company is domiciled in Jersey, outside of the EU, and the Metal Securities are distributed in the EU
under the EU Prospectus Directive which requires their offering to the public to be approved by an EU
Member State regulator. To date, the Company has chosen the UK Financial Conduct Authority (“FCA”) as
its Member State regulator for these purposes. Request is then made to the FCA, as the chosen Member
State regulator, for the passporting of the offering across the EU, once again, under the EU Prospectus
Directive.
It is currently expected that, if necessary, the Company would select an alternate EU Member State regulator
through which to seek approval and request passporting for its offering. As the Metal Securities already
comply with the European wide requirements of the EU Prospectus Directive, this is not expected to cause
any disruption or alteration to the terms or nature of the Metal Securities.
The Metal Securities continue to comply with all applicable laws and regulations. Continued assessment of
the impact will be required throughout the withdrawal process.
The board of directors (the “Board”) are not aware of any other developments that might have a significant
effect on the operations of the Company in subsequent financial periods not already disclosed in this report
or the attached interim financial statements.
Directors’ Remuneration
No director has a service contract with the Company. The directors of the Company who were employees
within the ETF Securities Limited group or are employees within the WisdomTree group do not receive
separate remuneration in their capacity as directors of the Company. R&H Fund Services (Jersey) Limited
(“R&H” or the “Administrator”) receives a fee in respect of the directors of the Company who are employees
of R&H.
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ETFS Metal Securities Limited
Directors’ Report (Continued)
Directors’ Remuneration (continued)
The directors’ fees which have been paid by ManJer on behalf of the Company for the period:
30 June 2019 30 June 2018
GBP GBP
Gregory Barton Nil Nil
Christopher Foulds Nil 1,750
Hilary Jones 4,000 Nil
Steven Ross 4,000 4,000
Peter Ziemba Nil Nil
Going Concern
The nature of the Company’s business dictates that the outstanding Metal Securities may be redeemed at
any time by the holder and in certain circumstances may be compulsorily redeemed by the Company. As the
redemption of Metal Securities will always coincide with the transfer of an equal amount of Metal Bullion, no
net liquidity risk is considered to arise. All other expenses are met by ManJer; therefore the directors
consider the Company to be a going concern and have prepared the financial statements on this basis.
Directors Statement
With regard to Regulation 2004/109/EC of the European Union (the "EU Transparency Directive"), the
directors confirm that to the best of their knowledge that:
• the interim financial statements for the period ended 30 June 2019 give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company as required by law and in
accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board; and
• the Directors’ Report gives a fair view of the development of the Company’s business, financial position
and the important events that have occurred during the period and their impact on these interim
financial statements.
On behalf of the directors
Hilary Jones
Director
30 August 2019
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ETFS Metal Securities Limited
Condensed Statement of Profit or Loss and Other Comprehensive Income
Period ended 30 June
2019 2018
Unaudited Unaudited
Notes USD USD
Revenue 2 17,518,105 16,763,574
Expenses 2 (17,518,105) (16,763,574)
Operating Result - -
Net Gain/(Loss) Arising on Contractual and Fair
Value of Metal Bullion 3 837,721,230 (339,905,094)
Net (Loss)/Gain Arising on Fair Value of Metal
Securities 4 (821,692,333) 337,367,388
Result and Total Comprehensive Income for the
Period 16,028,897 (2,537,706)
1
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Metal Securities 5 (16,028,897) 2,537,706
Adjusted Result and Total Comprehensive
Income for the Period - -
The directors consider the Company’s activities as continuing.
1
An explanation of the non-statutory adjustment is set out on pages 10 and 11. This represents the movement in the
difference between the Contractual Value of Metal Bullion and the market price of Metal Securities.
The notes on pages 8 to 13 form part of these condensed interim financial statements
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ETFS Metal Securities Limited
Condensed Statement of Financial Position
As at
30 June 2019 31 December 2018
Unaudited Audited
Notes USD USD
Current Assets
Trade and Other Receivables 3,216,903 2,850,345
Metal Bullion 3 10,597,906,185 8,618,842,192
Amounts Receivable on Securities Awaiting
Settlement 4 44,226,267 2,905,733
Amounts Receivable on Assets Awaiting Settlement 3 55,633,409 238,506
Total Assets 10,700,982,764 8,624,836,776
Current Liabilities
Metal Securities 4 10,591,727,391 8,628,692,295
Amounts Payable on Assets Awaiting Settlement 3 44,226,267 2,905,733
Amounts Payable on Securities Awaiting Settlement 4 55,633,409 238,506
Trade and Other Payables 3,216,900 2,850,342
Total Liabilities 10,694,803,967 8,634,686,876
Equity
Stated Capital 4 4
Revaluation Reserve 6,178,793 (9,850,104)
Total Equity 6,178,797 (9,850,100)
Total Equity and Liabilities 10,700,982,764 8,624,836,776
The condensed interim financial statements on pages 4 to 13 were approved and authorised for issue by the
board of directors and signed on its behalf on 30 August 2019.
Hilary Jones
Director
The notes on pages 8 to 13 form part of these condensed interim financial statements
-5- www.etfs.wisdomtree.eu
ETFS Metal Securities Limited
Condensed Statement of Cash Flows
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Operating Result for the Period - -
Changes in Operating Assets and Liabilities
(Increase)/Decrease in Receivables (366,559) 195,815
Increase/(Decrease) in Payables 366,559 (195,815)
Cash Generated from Operating Activities - -
Net Increase in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the Beginning of the
Period - -
Net Increase in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the End of the
Period - -
Metal Securities are issued and redeemed by transfer of Metal Bullion and have been netted off in the
Condensed Statement of Cash Flows.
The notes on pages 8 to 13 form part of these condensed interim financial statements
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ETFS Metal Securities Limited
Condensed Statement of Changes in Equity
Stated Retained Revaluation Total Adjusted
Capital Earnings Reserve 2 Equity Total Equity
Notes USD USD USD USD USD
Audited Opening Balance at 1 January 2018 4 - (7,577,675) (7,577,671) 4
Result and Total Comprehensive Income for the Period - (2,537,706) - (2,537,706) (2,537,706)
Transfer to Revaluation Reserve - 2,537,706 (2,537,706) - -
3
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Metal Securities - - - - 2,537,706
Unaudited Balance at 30 June 2018 4 - (10,115,381) (10,115,377) 4
Unaudited Opening Balance at 1 July 2018 4 - (10,115,381) (10,115,377) 4
Result and Total Comprehensive Income for the Period - 265,277 - 265,277 265,277
Transfer to Revaluation Reserve - (265,277) 265,277 - -
3
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Metal Securities - - - - (265,277)
Audited Balance at 31 December 2018 4 - (9,850,104) (9,850,100) 4
Audited Opening Balance at 1 January 2019 4 - (9,850,104) (9,850,100) 4
Result and Total Comprehensive Income for the Period - 16,028,897 - 16,028,897 16,028,897
Transfer to Revaluation Reserve 5 - (16,028,897) 16,028,897 - -
3
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Metal Securities 5 - - - - (16,028,897)
Unaudited Balance at 30 June 2019 4 - 6,178,793 6,178,797 4
2
This represents the difference between the Contractual Value of Metal Bullion and the market price of Metal Securities.
3
An explanation of the non-statutory adjustment is set out on pages 10 and 11.
The notes on pages 8 to 13 form part of these condensed interim financial statements
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements
1. Accounting Policies
The main accounting policies of the Company are described below.
Basis of Preparation
The interim financial statements for the six months ended 30 June 2019 have been prepared in accordance
with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”)
and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB.
The interim financial statements have been prepared under the historical cost convention, as modified by the
revaluation of financial assets and financial liabilities held at fair value through profit or loss.
The interim financial statements do not include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the Company’s annual financial statements for
the year ended 31 December 2018. Except as described below under Changes in Accounting Standards the
accounting policies adopted are consistent with those of the annual financial statements for the year ended
31 December 2018. The changes in accounting policies are also expected to be reflected in the financial
statements for the year ended 31 December 2019.
The presentation of interim financial statements in conformity with International Financial Reporting
Standards (“IFRSs”) requires the use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Company’s accounting policies.
The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities.
Estimates are continually evaluated and based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The only key
accounting judgement required to prepare these interim financial statements is in respect of the valuation of
Metal Bullion and Metal Securities held at fair value through profit or loss as disclosed in notes 3, 4 and 5.
Actual results could vary from these estimates.
This half yearly report has not been audited or reviewed by the Company’s auditors.
Changes in Accounting Standards
On 1 January 2019 the Company adopted IFRS 16, IFRS 9, IAS 28, IAS 19 and annual improvements and
have assessed that the adoption of these revised and amended accounting standards has not resulted in
any changes to the accounting policies and disclosures within these financial statements.
2. Operating Result
Operating result for the period comprised:
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Creation and Redemption Fees 25,896 25,275
Management Fees 17,492,209 16,738,299
Total Revenue 17,518,105 16,763,574
ManJer Fees (17,518,105) 16,763,574
Total Operating Expenses (17,518,105) (16,763,574)
Operating Result - -
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements (Continued)
3. Metal Bullion
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Change in Fair Value 837,721,230 (339,905,094)
As at
30 June 2019 31 December 2018
Unaudited Audited
USD USD
Metal Bullion at Fair Value 10,597,906,185 8,618,842,192
As at 30 June 2019, there were certain amounts of Metal Bullion awaiting the settlement in respect of the
creation or redemption of Metal Securities with transaction dates before the period end and settlement dates
in the following period:
• The monetary amount payable as a result of unsettled creations of Metal Securities is USD
44,226,267 (31 December 2018: USD 2,905,733).
• The monetary amount receivable as a result of unsettled redemptions of Metal Securities is USD
55,633,409 (31 December 2018: USD 238,506).
All Metal Bullion assets have been valued using the PM fix on 28 June 2019 as provided by the LBMA (being
the last fix prices available at the period end).
4. Metal Securities
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Change in Fair Value (821,692,333) 337,367,388
As at
30 June 2019 31 December 2018
Unaudited Audited
USD USD
Metal Securities at Fair Value 10,591,727,391 8,628,692,295
As at 30 June 2019, there were certain Metal Securities awaiting settlement in respect of creations or
redemptions with transaction dates before the period end and settlement dates in the following period:
• The amount receivable as a result of unsettled creations of Metal Securities is USD 44,226,267 (31
December 2018: USD 2,905,733).
• The amount payable as a result of unsettled redemptions of Metal Securities is USD 55,633,409 (31
December 2018: USD 238,506).
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements (Continued)
5. Adjustment from Market Value to Contractual Value of Metal Securities
Metal Bullion is priced on a daily basis based on the Metal Entitlement of each class of security and the
value of the Bullion using the appropriate fixing price provided by the London Bullion Market Association
(“LBMA”). This price is calculated based on the formula set out in the Prospectus, and is referred to as the
‘Contractual Value’.
The Company measures the Currency Securities at their market value than their Contractual Value (as
described in the Prospectus) because IFRS 13 requires the Company to identify the principal market and to
utilise the available market price within that principal market. The directors consider that the stock
exchanges where the Metal Securities are listed to be the principal market and as a result the fair value of
the Metal Securities is the on-exchange price as quoted on those stock exchanges demonstrating active
trading. The Metal Securities are priced using the mid-market price on the Statement of Financial Position
date taken just at the time the relevant bullion fix price is set.
Consequently a difference arises between the value of Metal Bullion (at Contractual Value) and Metal
Securities (at market value) presented in the Statement of Financial Position. This difference is reversed on
a subsequent redemption of the Metal Securities and transfer of the corresponding Metal Bullion.
Whilst the Metal Securities are quoted on the open market, the Company’s ultimate liability relates to its
contractual obligations to issue and redeem Metal Securities in exchange for Metal Bullion as determined by
the Metal Entitlement of each class of Metal Security on each trading day. The monetary value of each
creation and redemption of Metal Securities is recorded using the price provided by the LBMA on the
transaction date, and is the “Contractual Value”. Therefore, the issue and redemption of Metal Securities is
recorded at a value that corresponds to the value of the Metal Bullion transferred in respect of the issue and
redemption. As a result the Company has no net exposure to gains or losses on the Metal Securities and
Metal Bullion.
The contractual redemption values and movements in unrealised gains/losses during the period/year based
on the Contractual Values are:
As at
30 June 2019 31 December 2018
Unaudited Audited
USD USD
Metal Securities at Contractual Value 10,597,906,185 8,618,842,192
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Change in Contractual Value of Metal Securities (837,721,230) 339,905,094
Through the mis-matched accounting values, the results of the Company reflect a gain or loss which
represents the movement in the cumulative difference between the value of the Metal Bullion and the market
price of Metal Securities. This gain or loss is transferred to a Revaluation Reserve which is non-distributable.
The results of the Company are adjusted through the presentation of a non-statutory movement entitled
‘Adjustment from Market Value to Contractual Value (as set out in the Prospectus) of Metal Securities’.
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements (Continued)
5. Adjustment from Market Value to Contractual Value of Metal Securities (continued)
The mismatched accounting values are as shown below and represent the non-statutory adjustment
presented in the Condensed Statement of Profit or Loss and Other Comprehensive Income:
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
Net Gain/(Loss) Arising on Contractual and Fair Value of
Metal Bullion 837,721,230 (339,905,094)
Net (Loss)/Gain Arising on Fair Value of Metal Securities (821,692,333) 337,367,388
16,028,897 (2,537,706)
The gain or loss on the difference between the value of the Metal Bullion and the market price of Metal
Securities would be reversed on a subsequent redemption of the Metal Securities and transfer of the
corresponding Metal Bullion.
This gain or loss is transferred to a Revaluation Reserve which is non-distributable and a reconciliation of the
movements throughout the period/year is detailed below.
2019 2018
Unaudited Audited
USD USD
Balance brought forward at 1 January (9,850,104) (7,577,675)
Adjustment from Market Value to Contractual Value (as set
out in the Prospectus) of Metal Securities:
Period 1 January to 30 June 16,028,897 (2,537,706)
Period 1 July to 31 December - 265,277
16,028,897 (2,272,429)
Closing balance at 30 June / 31 December 6,178,793 (9,850,104)
6. Fair Value Hierarchy
The levels in the hierarchy are defined as follows:
• Level 1 fair value based on quoted prices in active markets for identical assets.
• Level 2 fair values based on valuation techniques using observable inputs other than quoted
prices within level 1.
• Level 3 fair values based on valuation techniques using inputs that are not based on observable
market data.
Categorisation within the hierarchy is determined on the basis of the lowest level input that is significant to
the fair value measurement of each relevant asset/liability.
The Company is required to utilise the available market price as the Metal Securities are quoted and actively
traded on the open market. Therefore Metal Securities are classified as Level 1 financial liabilities.
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements (Continued)
6. Fair Value Hierarchy (continued)
The Company holds Metal Bullion to support the Metal Securities as determined by the Metal Entitlement
(which is calculated in accordance with an agreed formula published in the Prospectus). Metal Bullion is
marked to fair value using the latest quote provided by the LBMA. The Company has contractual obligations
to issue and redeem Metal Securities in exchange for Metal Bullion as determined by the Metal Entitlement
of each class of Metal Security on each trading day. The monetary value of each creation and redemption of
Metal Securities is recorded using the price provided by the LBMA on the transaction date applied to that
Metal Entitlement. Therefore, Metal Bullion is classified as a level 2 asset, as the value is calculated using
third party pricing sources supported by observable, verifiable inputs.
The categorisation of the Company’s assets and (liabilities) are as shown below:
As at
30 June 2019 31 December 2018
Unaudited Audited
USD USD
Level 1
Metal Securities (10,591,727,391) (8,628,692,295)
Level 2
Metal Bullion 10,597,906,185 8,618,842,192
The Metal Securities and the Metal Bullion are recognised at fair value through profit or loss upon initial
recognition in line with the Company’s accounting policy. There are no assets or liabilities classified in level
3. There were no reclassifications during the year.
Metal Bullion is not considered to be a financial asset; however, it has been presented here for purposes of
consistency with prior periods and to show a matching between assets and liabilities.
7. Related Party Disclosures
Entities and individuals which have a significant influence over the Company, either through ownership of
HoldCo shares or by virtue of being a director of the Company, are related parties.
Fees charged by ManJer during the period:
Period ended 30 June
2019 2018
Unaudited Unaudited
USD USD
ManJer Fees 17,518,105 16,763,574
The following balances were due to ManJer at the period/year end:
As at
30 June 2019 31 December 2018
Unaudited Audited
USD USD
ManJer Fees Payable 3,216,900 2,850,341
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ETFS Metal Securities Limited
Notes to the Condensed Interim Financial Statements (Continued)
7. Related Party Disclosures (continued)
At 30 June 2019, USD 4 is receivable from ManJer (31 December 2018: USD 4).
As disclosed in the Directors’ Report, ManJer paid directors’ fees in respect of the Company of GBP 8,000
(30 June 2018: GBP 5,750).
Hilary Jones and Steven Ross are directors of R&H Fund Services (Jersey) Limited (“R&H”), the
administrator. During the period, R&H charged ManJer administration fees in respect of the Company of
GBP 62,000 (30 June 2018: GBP 56,500), of which GBP 31,000 (30 June 2018: GBP 31,000) was
outstanding at the period end.
8. Events Occurring After the Reporting Period
There have been no significant events since the reporting period that require disclosure.
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The intelligent
alternative.
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