The Royal Mint Responsibly Sourced Physical Gold ETC Surpasses $1 Billion AUM
1 OCT, 2024
By Jose Luis Palmer from RankiaPro Europe
HANetf, Europe’s first independent white-label UCITS ETF and ETC platform, has announced that The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) has exceeded $1 billion in assets under management (AUM). Launched in 2020, this ETC was the first of its kind, created in collaboration with a European sovereign mint. RMAU is 100% physically backed by fine gold bars, held in a high-security vault at The Royal Mint in Llantrisant, Wales, offering an alternative to the traditional London banking system for gold custody.
Key Features of RMAU:
- Responsible Sourcing: The gold is sourced from post-2019 London Bullion Market Association (LBMA) certified good delivery bars, with an increasing share of post-2022 bars. The bars are audited twice annually to ensure compliance with responsible sourcing standards.
- Recycled Gold: Over 50% of the gold held is recycled, which reduces the carbon intensity by more than 90% compared to mined gold, offering environmental benefits and reducing the carbon footprint of investors' portfolios.
- Physical Redemption: Investors have the unique option to redeem their ETC holdings for physical gold in the form of bars and coins, including iconic ranges like the Sovereign and Britannia.
As of January 1st, 2024, RMAU's AUM stood at $740.77 million and has since grown by $259.23 million, reflecting a 34.99% increase year-to-date. This growth contrasts with the broader market trend, as RMAU has seen positive inflows, while many other physical gold ETCs experienced outflows in 2024.
The ETC's combination of responsible sourcing, physical redemption options, and a distinct custody arrangement continues to drive its appeal among investors seeking both portfolio diversification and environmentally conscious investment options.
We’re incredibly proud to announce that The Royal Mint’s Responsibly Sourced Physical Gold ETC has reached an impressive milestone of $1 billion in assets under management. This achievement speaks volumes about the growing demand for sustainable investment options and reflects the fund’s strong sustainability credentials, which have truly resonated with investors.
The exceptional growth of this ETC also highlights The Royal Mint’s broader commitment to sustainability and our trusted, highly secure vaulting services. Additionally, it reflects the increasing attention on gold as a long-term investment, especially given its strong recent performance and enduring role as a safe haven.
We remain dedicated to providing responsible and reliable gold investment solutions for investors, backed by our long-standing legacy in precious metals.
Andrew Dickey, Divisional Director of Precious Metals at The Royal Mint
We are delighted to see RMAU exceed $1 billion AUM, especially given the outflows many gold ETPs have seen so far this year. We believe the strong USPs of RMAU have allowed it to stand out in the crowd.
While gold is a staple of many portfolios, some investors are concerned about whether it meets their sustainable values. RMAU is a unique way to gain exposure to responsibly sourced gold; the gold bars are 100% in compliance with the LBMA’s 2019 Responsible Sourcing guidelines, and over half are backed by 100% recycled gold.
The ETC is also independently audited to add a further level of assurance as to the adherence of these strict standards. This allows investors to access gold that aligns with their values.
Hector McNeil, Co-Founder and Co-CEO of HANetf
