FinEx ETF Ltd., part of FinEx Group, the international investment management company, has launched the first fully regulated gold fund available as an ETF in the European Union, the FinEx Physically Held Gold ETF (the “Fund”) Backed by physically held Gold Bullion in vaults in London….
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The Fund tracks the price of gold calculated using the London Gold Fixing Price set in US dollars on each trading day. Shares in the ETF will be available in US dollars and Rouble.
The ETF has been listed on the Irish Stock Exchange and cross-listed on the Moscow Exchange via a passporting mechanism pioneered by FinEx ETF.
Simon Luhr, Managing Partner and CEO, FinEx Capital Management, said: “Our Gold ETF is the first regulated Irish gold fund to list as an ETF. In Russia, cross listed investment products have to be fully regulated, so we have launched this product as an ETF rather than an exchange traded commodity (ETC) or note. Investing in gold via an ETF is a secure and safe way to gain exposure to this commodity, and being backed physically provides reassurance to investors. Our research shows there is substantial appetite among investors for gold now and going forwards. We anticipate significant demand for this product, especially in Russia.”
Evgeny Kovalishin, President and CEO, FinEx Plus, says: “Since we launched on the Moscow Exchange in April we have received many inquiries from market participants and seen tremendous interest for ETFs as an investment tool. During the summer our Eurobond ETF achieved the highest trading volume of any open-ended fund traded on the Exchange. And this is just the beginning. Our aim is to offer a comprehensive range of ETFs giving investors access to all the main asset classes with investment vehicles renowned worldwide for their qualities of value for money, convenience, efficiency and diversification.”
Research reveals positive outlook for gold
New research1 from FinEx ETF reveals that 42% of institutional investors believe that the price of gold will increase over the next one to three years, including 4% who anticipate a dramatic rise. Only 14.5% anticipate a fall in value.
The findings reveal that institutional investors believe the two main drivers of a rise in the value of gold will be fear of another financial shock (41% describing this factor as ‘very significant’ or ‘significant’), and geopolitical uncertainty (38.5% describe this factor as ‘very significant’ or ‘significant’).
ETFS/ETPS – The most popular vehicle for investing in gold
Nearly half (49%) of institutional investors said that ETFs/ETPs were their ‘investment vehicle of choice’ for investing in gold; versus 16.5% for pooled gold accounts; 4.1% for un-hedged gold stocks; and 1.0% for both bullion and futures.
Some 53% of institutional investors said that cost efficiency was a benefit offered by ETFs/ETPs when investing in gold, followed by liquidity (38% said this) and transparency (22%).
Product: Physically Held Gold
Ticker on Moscow Exchange: FXGD
Bloomberg Ticker: FXGD RM
Base/Trading currency: USD
Total Expense Ratio: 0.45%
As well as listing on Western stock exchanges, FinEx’s strategy is to be a market leader in emerging markets, where in many cases ETFs are not listed. For example, FinEx’s first ETF, the FinEx Tradable Russian Corporate Bond UCITS ETF, was the first ever to be listed on the Moscow Exchange.
FinEx ETF expects continued strong growth in the ETF market for the next few years and it believes increasingly a growing proportion of this will be fuelled by investors in emerging markets.
FinEx ETF is managed by Simon Luhr. He has 30 years’ experience in investment management and banking, and established and managed the equities finance, delta one and prime brokerage businesses at both Morgan Stanley and Nomura. He later co-founded his own funds – Marble Bar Asset Management LLP, SW1 Capital LP and Finex Capital Management LLP.
Simon has also served as Deputy Chairman of the London Stock Exchange’s Stock Borrowing Committee and as a Member of the Bank of England’s Stock Borrowing and Repo Committee. He was one of the authors of The Sound Practice Guide for European Hedge Funds.
BNY Mellon, the largest global administrator of ETFs in terms of funds serviced, is custodian and administrator for the Fund.
1Source: Research based on a survey of institutional investors in Europe, September 2013
Source: ETFWorld.co.uk – FinEx ETF Ltd.
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