AMUNDI PHYSICAL METALS PLC
(Incorporated as a public company with limited liability under the laws of Ireland)
_______________________________________
For the Financial Year Ended 31 March 2023
ANNUAL
REPORT
AMUNDI PHYSICAL METALS PLC
1
CONTENTS
Management and Administration
2-4
Directors' Report
5-14
Independent Auditor’s Report
15-20
Statement of Financial Position
21
Statement of Comprehensive Income
22
Statement of Changes in Equity
23
Statement of Cash Flows
24
Notes to the Financial Statements
25-46
AMUNDI PHYSICAL METALS PLC
MANAGEMENT AND ADMINISTRATION
2
Directors
Rolando Ebuna (Ireland)
Máiréad Lyons (Ireland)
Matthieu André Michel Guignard (France)*
Mehdi Balafrej (France)**
Registered Office
2nd Floor, Palmerston House
Fenian Street
Dublin 2
Ireland
Trustee and Security Trustee
HSBC Corporate Trustee Company (UK) Limited
8 Canada Square
London
E14 5HQ
United Kingdom
Administrator
HSBC Securities Services (Ireland) DAC
1 Grand Canal Square
Grand Canal Harbour
Dublin 2
Ireland
Issuing and Paying Agent
HSBC Continental Europe
38 avenue Kléber
75116 Paris
France
Independent Auditors
KPMG
1 Harbourmaster Place
IFSC
Dublin 1
Ireland
Arranger and Advisor
Amundi Asset Management S.A.S
91-93 Boulevard Pasteur
75015 Paris
France
Custodian and Metal Counterparty
HSBC Bank plc
8 Canada Square
London
E14 5HQ
United Kingdom
* up to 1 December 2022
** from 1 December 2022
Registration number - 638962
AMUNDI PHYSICAL METALS PLC
MANAGEMENT AND ADMINISTRATION (CONTINUED)
3
Legal Advisor to the Company
Legal Advisor to the Arranger and the
Advisor
Legal Advisor to the Trustee and the
Security Trustee
Company Secretary
Irish Listing Agent
Authorised Participants
AMUNDI PHYSICAL METALS PLC
MANAGEMENT AND ADMINISTRATION (CONTINUED)
4
Authorised Participants (continued)
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT
5
The Directors present herewith their report and audited financial statements for the year ended 31 March
2023.
Principal activities, business review and future activities
Amundi Physical Metals plc (the “Company”), the reporting entity, was incorporated on 4 December 2018 as
a public limited company with limited liability under the Irish Companies Act 2014 (the “Companies Act”), as
amended, with registration number 638962. The Company commenced operations on 21 May 2019. The
Company has been incorporated for an indefinite period and was established as a special purpose vehicle for
the purpose of issuing asset-backed securities. The Company has no employees.
The Company has established a Secured Precious Metal Linked Exchange Traded Commodities (“ETC”)
Securities Programme (the “Programme”) described in the Base Prospectus dated 20 May 2019, as updated
on 19 May 2021, under which a series (“Series”) of secured precious metal linked debt securities (“ETC
Securities”) may be issued from time to time. The Series of ETC Securities issued under the Programme will be
linked to, and provide exposure to, the price of gold (“precious metals”) sourced through London Bullion
Market Association (“LBMA”).
As at 31 March 2023, the Company has Amundi Physical Gold ETC as the only Series of ETC Securities in issue.
The Company’s ETC Securities were listed on Euronext Amsterdam and Euronext Paris on 28 May 2019 and
listed on Deutsche Börse on 2 July 2019. On 18 May 2020, the ETC Securities were listed on the London Stock
Exchange. On 1 January 2023, the ETC Securities were listed on Bolsa Institucional de Valores. On 16 March
2023, the ETC Securities were listed on Borsa Italiana.
The ETC Securities constitute secured, limited recourse obligations of the Company, issued in the form of debt
securities and are issued in Series. The ETC Securities are backed by fully-allocated physical holdings of the
relevant precious metal secured in the Custodian’s vault. The ETC Securities are non-interest bearing and have
a maturity date of 99 years from date the ETC Securities were issued. The ETC Securities provide a simple and
cost-effective means of gaining exposure very similar to that of a direct investment in the relevant precious
metal. Each ETC Security of a Series has a metal entitlement (the “Metal Entitlement”) expressed as an amount
in weight (in troy or fine troy ounces) of the relevant metal linked to such Series. This Metal Entitlement starts
at a predetermined initial Metal Entitlement for the relevant Series and is reduced daily by the Total Expense
Ratio (“TER”) (in metal) for the Series. The TER is the rate per annum at which the “all in one” operational fee
in respect the Series is calculated. TER is applied to the Metal Entitlement on a daily basis. Each day, the Metal
Entitlement attached to each ETC Security is reduced at a rate equal to the portion of the TER in metal
applicable to such day. The TER is accounted for on an accruals basis and is payable monthly in arrears. The
TER as at 31 March 2023 is 0.12% (2022: 0.12%).
HSBC Bank plc, Jane Street Financial Limited, Flow Traders B.V., Optiver VOF, BNP Paribas Arbitrage SNC and
Merrill Lynch International act as the Company’s authorised participants (the " Authorised Participants"). The
Authorised Participants in respect of the Series are the only entities allowed to buy and sell ETC Securities
directly from and to the Company. Authorised Participants may also act as market makers by buying and selling
ETC Securities from and to investors on an over-the-counter basis or via a stock exchange. During the life of
the ETC Securities, ETC Security holders can buy and sell ETC Securities on each exchange on which the ETC
Securities are listed, through financial intermediaries. ETC Security holder means the person in whose name a
Security of the relevant Series is registered in the Register. There were no other changes in Authorised
Participants during the year.
Q1 2022-Q4 2022
The period between the first quarter of this and last year was marked by high levels of volatility, risky
geopolitical events, rapid tightening by the US Federal Reserve, followed by tribulations in the banking sector
and major moves in the USD. Gold surged towards the end Q1 2022 in the aftermath of the Russian invasion
of Ukraine. This was the most impactful geopolitical event to influence gold in decades, sending bullion to
USD2,069/oz, a touch below the all-time high of USD2,072/oz set at the peak of COVID-19 in 2020.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT
6
Principal activities, business review and future activities (continued)
Q1 2022-Q4 2022 (continued)
As the Ukraine situation stabilized (to some degree) geopolitics was superseded by Federal Reserve policy. In
response to the highest inflation levels in decades, the Fed continued with a series of rate hikes and balance
sheet tightening. This triggered a sustained period of gold declines as the USD also rallied. Gold declines
continued in the face of continued strong retail purchases of gold bars & coins and firmer jewellery demand.
Institutional players tended to sell or liquidate ETF holdings. Much of this may be explained by differing views
on inflation. Retail investors tend to act on headline inflation while institutional players look beyond to the
likely response from the monetary authorities.
Gold sank for the bulk of the year bottoming out at USD1,613/oz at the end of September. Three
developments triggered a powerful and sustained rally in the fourth quarter. The USD lowered after hitting
multi-decade highs. This was followed by extraordinarily strong central bank purchases, well above historical
levels. Estimates put official sector buying at well above 1,100t, compared to the previous high of 657t in 2019.
This was elicited by geopolitical risks both in Asia and Europe, as well as a growing need to diversify central
bank portfolio reserves away from the USD (but without committing to another currency). The last factor was
a comeback in coin and bar as well as jewellery demand globally in reaction to low prices.
Q1 2023 and recent developments
The gold rally continues in 2023. USD weakness is a key reason for gold gains. This is augmented by a growing
conviction that the Fed and possibly other central banks will be compelled to not only end the tightening cycle
but cut rates in 2H 2023. This notion was given additional credence by the sudden and powerful emergence
of stresses in the banking system, following the collapse of three US regional banks and the takeover of Credit
Suisse. The monetary policy response, which included a slide in yields, bumped gold up well above USD2,000
on heavy safe haven demand. ETFs turned positive for the first time in months. This leaves the market within
challenging distance of record highs.
Outlook
While the market looks robust in the very near term, gold may be peaking. The Fed’s task of maintaining
financial market stability and combating inflation may be more bearish than bullish for gold, especially if rates
stay firm after the tightening cycle ends. Gold is historically sensitive to real rates, and while there has been
significant disconnect in this relationship, real rates are expected to weigh on gold as the year unfolds. Also,
gold has benefitted from heavy safe haven demand due to stresses in the banking system. If the worst of the
banking “crisis” is over, then safe haven demand will drop. USD weakness may be supportive, but may not
press gold too much higher as a weak USD is already baked into the price.
High prices are eroding key elements of demand including jewellery, coins and bars. This means investment
demand has to pick up the “slack” if prices are not to weaken. Geopolitical and trade risks remain supportive,
but may already be baked into prices and may require escalation to fuel further rallies. Central bank demand
hit record levels in 2022. It is expected for it to remain historically high this year but is unlikely to reach the
robust levels of last year, due in part to high prices. While supportive of prices, this will also limit bullion’s
upside.
Mine output is up and will likely rise further this and next year. Recycling rates are also up on higher prices
but may dip in 2024, should prices ease. High prices and moderating inflation are likely to erode jewellery, as
well as robust coin and bar demand, in key price-sensitive emerging and OECD markets. Central bank demand
will likely ease from stellar 2022 levels but remain high. Geopolitical risks and portfolio diversification needs
are compelling reasons supporting official sector gold accumulation but high prices will likely limit central bank
demand.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
7
Statement of Directors’ responsibilities in respect of the Directors’ Report and the Financial Statements
The Directors are responsible for preparing the annual report which comprise the Directors’ Report and
audited financial statements, in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law
they have elected to prepare the financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union (“IFRS”).
Under company law the Directors must not approve the financial statements unless they are satisfied that
they give a true and fair view of the assets, liabilities and financial position of the Company as at 31 March
2023 and of its profit or loss for the year then ended.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether they have been prepared in accordance with applicable accounting standards, namely
IFRS as adopted by the European Union, subject to any material departures from those standards
being disclosed and explained in the notes to the financial statements;
• assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Company will continue in business.
The Directors are responsible for keeping adequate accounting records which disclose with reasonable
accuracy at any time the assets, liabilities, financial position and profit or loss of the Company and enable
them to ensure that the financial statements comply with the Companies Act. They are responsible for such
internal controls as they determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error, and have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect
fraud and other irregularities. The Directors are also responsible for preparing a director’s report that complies
with the requirements of the Companies Act 2014.
These financial statements are published on www.amundietf.com. The Directors are responsible for the
annual report and financial statements and together with the Arranger and Advisor are responsible for the
maintenance and integrity of the financial information included on the website. Legislation in the Republic of
Ireland governing the presentation and dissemination of the Financial Statements may differ from legislation
in other jurisdictions.
Responsibility statement as required by the Transparency Directive and Corporate Governance Code
Each of the Directors, whose names and functions are listed on page 2 of this annual report, confirm that, to
the best of each person's knowledge and belief:
• The financial statements, prepared in accordance with the applicable set of accounting standards, give
a true and fair view of the assets, liabilities, financial position of the Company at year end and of the
profit of the Company for the year then ended;
• the Directors' report includes a fair review of the development and performance of the business and
the position of the Company, together with a description of the principal risks and uncertainties that
they face; and
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
8
Responsibility statement as required by the Transparency Directive and Corporate Governance Code
(continued)
• the annual report and financial statements, taken as a whole, provides the information necessary for
shareholders to assess the Company's position and performance, business model and strategy.
The Arranger and Advisor
The Company has appointed Amundi Asset Management S.A.S as its Arranger and Advisor pursuant to an
advisory agreement (the "Advisory Agreement").
Results
The results for the financial year are set out in the Statement of Comprehensive Income on page 22.
Significant Events during the financial year
The Company issued an updated prospectus on 17 May 2022 to reflect the changes in United States selling
restrictions, risks related to precious metals, shortage of physical metal, disruption of markets, early
redemption events and events of default, EU Anti-Tax Avoidance Directive and EU Anti-Tax Avoidance
Directive 2, metal counterparty sections and other Company rules and regulations.
On 1 December 2022, Matthieu André Michel Guignard resigned as a Director of the Company. On 1 December
2022, Mehdi Balafrej was appointed as a Director of the Company.
On 1 January 2023, the ETC Securities were listed on Bolsa Institucional de Valores.
On 16 March 2023, the ETC Securities were listed on Borsa Italiana.
Whilst the Company has no direct exposure to Russian, Belarusian or Ukrainian securities, the Directors
acknowledge the situation in Ukraine and its potentially adverse economic impact on the global economy, and
the economies of certain nations and companies, which may negatively impact the Company’s performance.
This is an additional risk factor which could impact the Company's assets. The Directors are actively monitoring
developments closely.
During the year ended 31 March 2023, Russian metal refiners remained suspended from the LBMA. There has
been no substantial impact on the Company's activities arising from the suspension of the refiners.
The Company issued the Second Supplement on 5 January 2023 to reflect the changes of Prospectus
Regulation.
Other than the above, there were no other significant events during the financial period affecting the
Company.
Subsequent events
The Directors acknowledge the ongoing situation in Ukraine and its potentially adverse economic impact on
the global economy and the economies of certain nations and companies, which may negatively impact the
Company’s performance. The Directors will continue to actively monitor developments closely.
There were no other significant events after the balance sheet date affecting the Company which would
require adjustment to or disclosure in the financial statements.
Directors
The Directors who held office during the year ended 31 March 2023 are listed on page 2.
Changes in Directors, Secretary and registered office
On 1 December 2022, Matthieu André Michel Guignard resigned as a Director of the Company. On 1 December
2022, Mehdi Balafrej was appointed as a Director of the Company. There has been no change in Secretary and
registered office during the year.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
9
Directors’ and Secretary’s Interests
None of the Directors or their respective families held any interest, beneficial or otherwise, in the share capital
of the Company as at 31 March 2023.
The Board of Directors are not aware of any contracts or arrangements of any significance in relation to the
business of the Company in which the Directors had any interest at any time during the year ended 31 March
2023, other than those described under Related and Connected Party Transactions in Note 15 of the financial
statements.
Remuneration
Details of remuneration paid to the Directors are set out in Note 15.
Principal risks and uncertainties
The Company is subject to various risks. The principal risks relating to financial instruments are outlined in
Note 4 to the financial statements.
Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the
Company’s processes and infrastructure, and from external factors other than credit, markets and other price
risk as noted above and liquidity issues such as those arising from legal and regulatory requirements and
generally accepted standards of corporate behaviour.
Operational risks arise from all of the Company’s operations. The Company was incorporated with the purpose
of engaging in those activities outlined in note 1. All administration functions are outsourced to HSBC
Securities Services (Ireland) DAC. Cafico Corporate Services Limited provides Corporate Services. Amundi
Asset Management S.A.S acts as arranger and advisor. HSBC Continental Europe acts as issuing and paying
agent. Trustee and Security Trustee services are carried out by HSBC Corporate Trustee Company (UK) Limited.
HSBC Bank plc acts as custodian and metal counterparty.
The Company consistently monitors its operational risk due to the reliance on third party service providers.
As discussed in note 2, the Company monitors the effect that the current economic climate is having on the
service providers that the Company uses but the Company does note any material risks.
Climate Risk
The directors acknowledge that climate change is an emerging risk impacting the global economy and will
continue to be of interest to all stakeholders with a focus on how climate change is expected to impact the
operations of the precious metals industry in areas such as mining, processing, warehousing, transportation,
societal response and the regulatory environment in the future. However, having considered such factors
relating to climate change, the directors have determined that there are no direct or immediate impacts of
climate change on the business operations of the Company. Given this, there is no basis on which to provide
extended information of analysis relating to climate change risks on the business operations of the Company.
Furthermore, the directors conclude that at present there is no material impact to the fair value of financial
instruments, assets and liabilities of the company. The directors recognise that governmental and societal
responses to climate change risks are still developing and the future impact cannot be predicted. Therefore,
the future fair value of assets and liabilities may fluctuate as the market responds to climate change policies,
physical events and changes in societal behaviours.
Political donations
The Electoral Act 1997 (as amended by the Electoral Amendment Political Funding Act 2012) requires
companies to disclose all political donations over €200 in aggregate made during the financial year. The
Directors, on enquiry, have satisfied themselves that no such donation in excess of this amount has been made
by the company.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
10
Accounting records
The Directors are responsible for ensuring that adequate accounting records, as outlined in Section 281 to 285
of the Companies Act, are kept by the Company. The measures taken by Directors to secure compliance with
the Company’s obligation to keep adequate accounting records are the use of appropriate systems and
procedures and ensuring that competent persons are responsible for the accounting records. The accounting
records are kept at the following address: HSBC Securities Services (Ireland) DAC, 1 Grand Canal Square, Grand
Canal Harbour, Dublin 2, Ireland.
Going concern
The Directors review the performance and risks associated with the Company’s operations and structure on a
regular basis throughout the financial year and at the time of approving the financial statements. The Directors
believe that the Company will continue in operation for the foreseeable future. The Directors are satisfied
that it is appropriate to adopt the going concern basis of accounting in preparing the Company’s financial
statements.
Key performance indicators
The Company is a Special Purpose Vehicle whose sole business is the issue of asset-backed securities. The
Company has established a programme for the issue of ETC Securities whose return is linked to the
performance of gold.
The Directors confirm that the key performance indicators as disclosed below are those that are used to assess
the performance of the Company.
During the year:
the Company made a profit of USD 1,972 (2022: USD 1,000);
the net gains arising on precious metals at fair value amounted to USD 9,330,968 (2022: USD
502,796,843);
the net losses arising on ETC securities designated at fair value amounted to USD 9,331,651 (2022:
USD 502,798,840);
the subscriptions of ETC Securities amounted to USD 1,662,804,649 (2022: USD 2,993,030,455); and
the redemptions of ETC Securities amounted to USD 2,108,892,510 (2022: USD 1,536,249,487)
As at 31 March 2023:
the Company’s total ETC Securities issued had a fair value of USD 4,387,979,851 (2022: USD
4,836,230,909);
the Company has invested in Precious metals with a fair value of USD 4,392,465,492 (2022: USD
4,849,044,864);
ETC Securities awaiting settlement through profit or loss amounted to USD 6,255,121 (2022:
12,342,883);
the net assets were USD 36,871 (2022: USD 34,899); and
the Company had the following ETC Securities in issue:
Description
Maturity
date
Currency
Nominal
(in units)
Fair Value
(USD)
Precious metal
held
Amundi Physical Gold
ETC Securities
23 May 2118
USD
55,726,311
4,387,979,851
Gold
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
11
Key performance indicators (continued)
As at 31 March 2022:
the Company had the following ETC Securities in issue:
Description
Maturity
date
Currency
Nominal
(in units)
Fair Value
(USD)
Precious metal
held
Amundi Physical Gold
ETC Securities
23 May 2118
USD
62,531,327
4,836,230,909
Gold
The precious metals (gold per troy ounce) increased from $1,942.15 as at 31 March 2022 to $1,979.70 as at
31 March 2023 and movements during the year are further discussed in the ‘Business review and future
developments’ section below. The Gold price increase over the year resulted in the majority of gains arising
from precious metals and net losses from ETC securities. ETC securities in issue increased on a net basis when
redemptions are taken into account. The Company's TER income and TER expense increased in line with the
precious metals and the Company returned a small profit.
Results and dividends for the year
The results for the year are set out on page 22. The Directors do not recommend the payment of a dividend
for the year ended 31 March 2023 (2022: Nil).
Independent auditors
In accordance with Section 382(2) of the Companies Act, the Directors appointed KPMG as the Company’s
auditor effective from 9 March 2020 and KPMG have been re-appointed annually since that date, in
accordance with section 383(2), and will continue in office.
Relevant audit information
Each Director at the date of approval of this report confirms that:
- so far as the Directors are aware, there is no relevant audit information of which the Company’s
auditors are unaware; and
- the Directors have taken all steps that they ought to have taken as a Director in order to make
themselves aware of any relevant audit information and to establish that the Company’s auditors are
aware of this information.
Audit committee
As set out in Section 1551 (11) (c) of the Act, a Company issuing asset backed securities may avail itself of an
exemption from the requirements to establish an audit committee. The sole business of the Company relates
to the issuing of asset-backed securities. Given the contractual obligations of the Administrator and the limited
recourse nature of the securities issued by the Company, the Board of Directors have concluded that there is
currently no need for the Company to have a separate audit committee in order for the Board to perform
effective monitoring and oversight of the internal control and risk management systems of the Company In
relation to the financial reporting process and the monitoring of the statutory audit and the independence of
the statutory auditors. Accordingly, the Company has availed itself of the exemption under Section 1551 (11)
(c) of the Act not to establish an audit committee.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
12
Corporate Governance Statement
General Principles
The Company is subject to and complies with Irish statute comprising the Companies Act. As the Company’s
ETC Securities have been admitted to trade on the regulated market of Euronext Paris, Euronext Amsterdam,
Deutsche Börse, London Stock Exchange and Borsa Italiana, the Company adheres to the Listing Rules of
Euronext Paris, Deutsche Börse, London Stock Exchange and Borsa Italiana in so far as it relates to an overseas
company trading in secured metal linked debt securities. As the Company has a standard listing on the London
Stock Exchange it is not subject to the UK Corporate Governance code.
The Board of Directors of the Company is responsible for establishing and maintaining adequate internal
control and risk management systems for the Company in relation to the financial reporting process. Such
systems are designed to manage rather than eliminate the risk of failure to achieve the Company’s financial
reporting objectives and can only provide reasonable and not absolute assurance against material
misstatement or loss.
The Company is not subject to the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations
2006 and therefore not required to include information relating to voting rights and other matters required
by those Regulations and specified by the Companies Act for our consideration in the Corporate Governance
Statement.
Financial Reporting Process
The Board has established processes regarding internal control and risk management systems to ensure its
effective oversight of the financial reporting process. These include appointing HSBC Securities Services
(Ireland) DAC (the “Administrator”) to maintain the accounting records of the Company independently. The
Administrator is contractually obliged to maintain adequate accounting records as required pursuant to the
corporate administration agreement. The Administrator is also contractually obliged to prepare, for review
and approval by the Directors, the financial statements that gives a true and fair view. The Directors evaluate
and discuss significant accounting and reporting issues as the need arises.
From time to time, the Directors also examine and evaluate the Administrator’s financial accounting and
reporting routines. The Administrator has operating responsibility for internal control in relation to the
financial reporting process and the Administrator reports to the Directors.
The Company’s policies and the Directors’ instructions with relevance for financial reporting are updated and
communicated via appropriate channels, such as e-mail, correspondence and meetings, to ensure that all
financial reporting information requirements are met in a complete and accurate manner. The Directors have
an annual process to ensure that appropriate measures are taken to consider and address the shortcomings
identified and measures recommended by the independent auditors.
Given the contractual obligations of the Administrator, the Directors have concluded that there is currently
no need for the Company to have a separate internal audit function in order for the Directors to perform
effective monitoring and oversight of the internal control and risk management systems of the Company in
relation to the financial reporting process.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
13
Corporate Governance Statement (continued)
Risk assessment
The Board is responsible for assessing the risk of irregularities whether caused by fraud or error in financial
reporting and ensuring the processes are in place for the timely identification of internal and external matters
with a potential effect on financial reporting. The Board has also put in place processes to identify changes in
accounting rules and recommendations and to ensure that these changes are accurately reflected in the
Company’s financial statements. More specifically:
- the Administrator has a review procedure in place to ensure errors and omissions in the financial
statements are identified and corrected; and
- regular training on accounting rules and recommendations is provided to the accountants, employed
by the Administrator.
Capital structure
No person has a significant direct or indirect holding of securities in the Company. No person has any special
rights of control over the Company’s share capital. There are no restrictions on voting rights.
Dealings with shareholders
The convening and conduct of shareholders’ meetings are governed by the Articles and the Companies Act.
The Company shall in each year hold a general meeting as its annual general meeting in addition to any other
meetings in that year, and shall specify the meeting as such in the notices.
Also, not more than 15 months shall elapse between the date of one annual general meeting of the Company
and that of the next and each annual general meeting should be held within nine months of the end of each
accounting period of the Company.
Board composition and activities
In accordance with the Articles, unless otherwise determined by an ordinary resolution of the Company in a
general meeting, the number of Directors may not be more than twelve, nor less than two, provided always
that a majority of the Directors must be resident in the State for taxation purposes.
With regard to the appointment and replacement of directors, the Company is governed by its Constitution,
Irish Statute comprising the Companies Act and the listing rules of Euronext Paris, Euronext Amsterdam,
Deutsche Börse, London Stock Exchange and Borsa Italiana. The Constitution itself may be amended by special
resolution of the shareholders. In accordance with the Articles, it is not necessary for Directors to retire by
rotation or otherwise seek re-election. Directors may, subject to the Articles, appoint additional Independent
Directors.
The Directors are responsible for managing the business affairs of the Company in accordance with the
Constitution of the Company, which allows it to enter into contracts and perform all tasks necessary to
conduct the business of the Company. The directors may delegate certain functions to the Administrator and
other parties, subject to supervision and direction by the directors.
AMUNDI PHYSICAL METALS PLC
DIRECTORS’ REPORT (CONTINUED)
14
Directors’ Compliance Statement
The Directors, in accordance with Section 225 (2) of the Companies Act, acknowledge that they are responsible
for securing the Company's compliance with certain obligations specified in that section arising from the
Companies Act, where applicable, the Market Abuse (Directive 2003/6/EC) Regulations 2005, the Prospectus
(Directive 2003/71/EC) Regulations 2005, the Transparency (Directive 2004/109EC) Regulations 2007 and Tax
laws ("relevant obligations").
The Directors confirm that:
- a compliance policy statement has been drawn up setting out the Company's policies that in their
opinion are appropriate with regard to such compliance;
- appropriate arrangements and structures have been put in place that, in their opinion, are designed
to provide reasonable assurance of compliance in all material respects with those relevant obligations;
and
- a review has been conducted, during the financial period, of those arrangements and structures.
In discharging their responsibilities under Section 225 of the Companies Act, the Directors relied upon, among
other things, the services provided, advice and/or representations from third parties whom the Directors
believe have the requisite knowledge and experience in order to secure material compliance with the
Company’s relevant obligations.
On behalf of the Board:
______________ ______________
Rolando Ebuna Máiréad Lyons
Director Director
Date: 7 July 2023
15
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Amundi Physical Metals plc (‘the Company’) for the year ended
31 March 2023 set out on pages 21 to 46, which comprise the Statement of Financial Position, Statement of
Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and related notes, including
the summary of significant accounting policies set out in note 3.
The financial reporting framework that has been applied in their preparation is Irish Law and International
Financial Reporting Standards (IFRS) as adopted by the European Union.
In our opinion:
- the financial statements give a true and fair view of the assets, liabilities and financial position of the
Company as at 31 March 2023 and of its profit for the year then ended;
- the financial statements have been properly prepared in accordance with IFRS as adopted by the European
Union; and
- the financial statements have been properly prepared in accordance with the requirements of the
Companies Act 2014.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities section of our report. We believe that the audit evidence we have obtained is a sufficient and
appropriate basis for our opinion. Our opinion is consistent with our report to the Board of Directors.
We were appointed as auditor by the directors on 9 March 2020. The period of total uninterrupted
engagement is the 4 years ended 31 March 2023. We have fulfilled our ethical responsibilities under, and we
remained independent of the Company in accordance with, ethical requirements applicable in Ireland,
including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA) as
applied to listed public interest entities. No non-audit services prohibited by that standard were provided.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’
assessment of the entity’s ability to continue to adopt the going concern basis of accounting included:
We evaluated the directors' assessment of the Company's ability to continue to adopt the going concern basis
of accounting. In our evaluation of the Directors' conclusions, we considered the inherent risks to the
Company's business model and analysed how those risks might affect the Company's financial resources or
ability to continue operations over the going concern period.
The risk that we considered most likely to adversely affect the Company's available financial resources over
the going concern period was:
- Whether there are sufficient financial flows from Authorised Participants for the Company’s ETC Securities
in order for the total expense ratio to cover the cost of the ETC programme and provide a return to the
Arranger.
We also considered whether the risk could plausibly affect the availability of financial resources in the going
concern period by comparing severe, but plausible downside scenarios that could arise from these risks
individually and collectively against the level of available financial resources indicated by the Company's
financial records.
16
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
(continued)
Conclusions relating to going concern (continued)
Based on the work we have performed, we have not identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue
as a going concern for a period of at least twelve months from the date when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Detecting irregularities including fraud
We identified the areas of laws and regulations that could reasonably be expected to have a material effect
on the financial statements and risks of material misstatement due to fraud, using our understanding of the
entity's industry, regulatory environment and other external factors and inquiry with the directors. In addition,
our risk assessment procedures included:
- Inquiring with the directors as to the Company’s policies and procedures regarding compliance with laws
and regulations, identifying, evaluating and accounting for litigation and claims, as well as whether they
have knowledge of non-compliance or instances of litigation or claims.
- Inquiring of directors as to the Company’s high-level policies and procedures to prevent and detect fraud,
as well as whether they have knowledge of any actual, suspected or alleged fraud.
- Inquiring of directors regarding their assessment of the risk that the financial statements may be materially
misstated due to irregularities, including fraud.
- Inspecting the Company’s regulatory and legal correspondence.
- Reading Board minutes.
- Performing planning analytical procedures to identify any usual or unexpected relationships.
We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the audit
team.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including
companies and financial reporting legislation. We assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items, including assessing the financial
statement disclosures and agreeing them to supporting documentation when necessary.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-
compliance could have a material effect on amounts or disclosures in the financial statements, for instance
through the imposition of fines or litigation. We identified the following areas as those most likely to have
such an effect: certain aspects of company legislation recognising the financial and nature of the Company’s
activities and its legal form.
Auditing standards limit the required audit procedures to identify non-compliance with these non-direct laws
and regulations to inquiry of the directors and inspection of regulatory and legal correspondence, if any. These
limited procedures did not identify actual or suspected non-compliance.
We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an
opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk
of management override of controls. We did not identify any additional fraud risks.
17
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
(continued)
Detecting irregularities including fraud (continued)
In response to the fraud risk, we also performed procedures including:
- Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified
entries to supporting documentation.
- Evaluating the business purpose of significant unusual transactions
- Assessing significant accounting estimates for bias
- Assessing the disclosures in the financial statements
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected
some material misstatements in the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For example, the further removed non-
compliance with laws and regulations (irregularities) is from the events and transactions reflected in the
financial statements, the less likely the inherently limited procedures required by auditing standards would
identify it.
In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as these may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We
are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all
laws and regulations.
Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit
of the financial statements and include the most significant assessed risks of material misstatement (whether
or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
In arriving at our audit opinion above, the key audit matters, in decreasing order of audit significance, were as
follows (unchanged from 2022):
Accuracy of the valuation of Precious Metals at fair value through profit or loss $4,392,465,492 (2022:
$4,849,044,864)
Refer to note 3 (accounting policy) and note 4 (financial instruments and risks) and note 10 (Precious metals
at fair value)
The key audit matter
How the matter was addressed in our audit
The accuracy of the valuation of precious metals at fair value
through profit or loss is considered a key audit matter. The
Company’s investments in precious metals at fair value through
profit or loss comprise 99% of the total assets (by value of the
Company) and are considered to be a key driver of the
Company’s results.
While the nature of the precious metals held do not require
a significant level of judgement as they comprise of precious
metals which have observable quoted prices on actively traded
markets, due to their significance in the context of the financial
statements as a whole, the precious metals were identified as a
matter which had the greatest effect on our overall audit
strategy and allocation of resources in planning and completing
our audit.
Our audit procedures over the accuracy of the valuation of
precious metals at fair value included but were not limited to:
- Obtained and documented our understanding of the process
in place to value the precious metals; and
- Agreed 100% of the year end portfolio prices to an
independent source.
- With the assistance of our valuation specialists, we
independently revalued the precious metals at fair value
held by the Company and determined using professional
judgement whether the prices are within a reasonable
range.
Based on the evidence obtained, we found the valuations to be
within an acceptable range.
18
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
(continued)
Key audit matters: our assessment of risks of material misstatement (continued)
Existence of Precious Metals at fair value through profit or loss $4,392,465,492 (2022: $4,849,044,864)
Refer to note 3 (accounting policy) and note 4 (financial instruments and risks) and note 10 (Precious metals
at fair value)
The key audit matter
How the matter was addressed in our audit
The Company’s investments in precious metals at fair value
through profit or loss comprise 99% of the total assets (by value
of the Company). Due to the size of the portfolio and the fact
that the precious metal are the main asset owned by the
Company, the existence of precious metals at fair value was
identified as a key audit matter which had a significant effect on
our overall audit strategy and allocation of resources in planning
and completing our audit.
Our audit procedures over the existence of precious metals at fair
value through profit or loss included but were not limited to:
- Obtained and documented our understanding of the process
in place for existence of precious metals; and
- We obtained an independent third party confirmation of
precious metals held at year-end from the Custodian and
agreed it to the Company's portfolio records.
Based on evidence obtained, we found that no material
misstatements were identified by our audit procedures.
Our application of materiality and an overview of the scope of our audit
Materiality for the financial statements as a whole was set at $44m (2022: $48.4m), determined with
reference to a benchmark of the Company’s total asset value (of which it represents 1% (2022: 1%)).
We consider the Company’s total asset value to be the most appropriate benchmark as it is one of the principal
considerations for members of the Company in assessing financial performance of the Company.
In line with our audit methodology, our procedures on individual account balances and disclosures were
performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that
individually immaterial misstatements in individual account balances add up to a material amount across the
financial statements as a whole.
Performance materiality was set at 75% (2022: 75%) of materiality for the financial statements as a whole.
We applied this percentage in our determination of performance materiality because we did not identify any
factors indicating an elevated level of risk.
We reported to the Board of Directors any corrected or uncorrected identified misstatements exceeding
$2.2m (2022: $2.4m), in addition to other identified misstatements that warranted reporting on qualitative
grounds.
In planning the audit, we applied materiality and performance materiality to assist us in determining what
risks were significant risks and the procedures performed.
Our audit was undertaken to the materiality and performance materiality level specified above and was all
performed by a single engagement team in Dublin.
Other information
The directors are responsible for the other information presented in the Annual Report together with the
financial statements. The other information comprises the information included in the directors’ report. The
financial statements and our auditor’s report thereon do not comprise part of the other information. Our
opinion on the financial statements does not cover the other information and, accordingly, we do not express
an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial
statements audit work, the information therein is materially misstated or inconsistent with the financial
statements or our audit knowledge. Based solely on that work we have not identified material misstatements
in the other information
19
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
(continued)
Other information (continued)
Based solely on our work on the other information undertaken during the course of the audit, we report that:
- we have not identified material misstatements in the directors’ report;
- in our opinion, the information given in the directors’ report is consistent with the financial statements;
and
- in our opinion, the directors’ report has been prepared in accordance with the Companies Act 2014.
Corporate governance statement
As required by the Companies Act 2014, we report, in relation to information given in the Corporate
Governance Statement on pages 12 to 13, that:
- based on the work undertaken for our audit, in our opinion, the description of the main features of internal
control and risk management systems in relation to the financial reporting process is consistent with the
financial statements and has been prepared in accordance with the Act; and
- the description of the main features of internal control and risk management systems in relation to the
financial reporting process is consistent with the financial statements and has been prepared in accordance
with the Act; and
- the Company is not subject to the European Communities (Takeover Bids (Directive 2004/25/EC))
Regulations 2006 and therefore not required to include information relating to voting rights and other
matters required by those Regulations and specified by the Companies Act for our consideration in the
Corporate Governance Statement.
- based on our knowledge and understanding of the Company and its environment obtained in the course
of our audit, we have not identified any material misstatements in that information.
- We also report that, based on work undertaken for our audit, the information required by the Act is
contained in the Corporate Governance Statement.
We have nothing to report on other matters on which we are required to report by exception
The Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors’
remuneration and transactions required by Sections 305 to 312 of the Act are not made. We have nothing to
report in this regard.
Our opinions on other matters prescribed by the Companies Act 2014 are unmodified
We have obtained all the information and explanations which we consider necessary for the purposes of our
audit.
In our opinion the accounting records of the Company were sufficient to permit the financial statements to
be readily and properly audited and the financial statements are in agreement with the accounting records.
Respective responsibilities and restrictions on use
Responsibilities of directors for the financial statements
As explained more fully in the directors’ responsibilities statement set out on page 7, the directors are
responsible for: the preparation of the financial statements including being satisfied that they give a true and
fair view; such internal control as they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error; assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using
the going concern basis of accounting unless they either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
20
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AMUNDI PHYSICAL METALS PLC
(continued)
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
A fuller description of our responsibilities is provided on IAASA’s website at:
https://iaasa.ie/publications/description-of-the-auditors-responsibilities-for-the-audit-of-the-financial-
statements/.
The purpose of our audit work and to whom we owe our responsibilities
Our report is made solely to the Company’s members, as a body, in accordance with Section 391 of the
Companies Act 2014. Our audit work has been undertaken so that we might state to the Company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and
the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
10 July 2023
James Casey
for and on behalf of
KPMG
Chartered Accountants, Statutory Audit Firm
1 Harbourmaster Place
IFSC
Dublin 1
AMUNDI PHYSICAL METALS PLC
AUDITED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The accompanying notes form an integral part of these audited annual financial statements.
21
As at
As at
31 March
2023
31 March
2022
Notes
$
$
CURRENT ASSETS
Cash and cash equivalents
26,849
27,351
Precious metals at fair value through profit or loss
10
4,392,465,492
4,849,044,864
Due from noteholders
13
2,212,639
-
Other receivable
15
13,072
9,984
TOTAL CURRENT ASSETS
4,394,718,052
4,849,082,199
EQUITY
Share capital
9
(27,385)
(27,385)
Retained earnings
(9,486)
(7,514)
TOTAL EQUITY
(36,871)
(34,899)
CURRENT LIABILITIES
ETC securities designated at fair value
11
(4,387,979,851)
(4,836,230,909)
ETC securities awaiting settlement through profit or loss
12
(6,255,121)
(12,342,883)
Due to advisor
12
(443,159)
(471,072)
Securities tax payable
(3,050)
(2,436)
TOTAL CURRENT LIABILITIES
(4,394,681,181)
(4,849,047,300)
TOTAL EQUITY AND LIABILITIES
(4,394,718,052)
(4,849,082,199)
Approved on behalf of the Board of Directors:
______________
Rolando Ebuna
Director
______________
Máiréad Lyons
Director
Date: 7 July 2023
AMUNDI PHYSICAL METALS PLC
AUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
The accompanying notes form an integral part of these audited annual financial statements.
22
Year ended
Year ended
31 March
2023
31 March
2022
Notes
$
$
INCOME
Interest income
45
-
Total expense ratio income
7
5,239,097
5,157,245
Other income
15
3,268
3,328
NET GAINS/(LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE
Net gains arising on precious metals at fair value
5
9,330,968
502,796,843
Net (losses) arising on ETC securities designated at fair value
6
(9,331,651)
(502,798,840)
NET INCOME
5,241,727
5,158,576
EXPENSES
Interest expense
(53)
(146)
Total expense ratio expense
7
(5,239,044)
(5,157,099)
NET EXPENSES
(5,239,097)
(5,157,245)
NET PROFIT FOR THE FINANCIAL YEAR BEFORE TAX
2,630
1,331
Income tax expense
8
(658)
(331)
TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR
1,972
1,000
There are no recognised gains or losses arising during the financial year other than those dealt with in the Statement of
Comprehensive Income. In arriving at the results for the financial year, all amounts relate to continuing operations.
AMUNDI PHYSICAL METALS PLC
AUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
The accompanying notes form an integral part of these audited financial statements.
23
Called Up Share
Capital
Retained Earnings
Total Equity
$
$
$
Balance as at 1 April 2021
27,385
6,514
33,899
Total comprehensive income for the financial year
-
1,000
1,000
BALANCE AS AT 31 MARCH 2022
27,385
7,514
34,899
Called Up Share
Capital
Retained Earnings
Total Equity
$
$
$
Balance as at 1 April 2022
27,385
7,514
34,899
Total comprehensive income for the financial year
-
1,972
1,972
BALANCE AS AT 31 MARCH 2023
9,486
36,871
AMUNDI PHYSICAL METALS PLC
AUDITED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
The accompanying notes form an integral part of these audited annual financial statements.
24
Year ended
Year ended
31 March
2023
31 March
2022
$
$
Cash flows from operating activities:
Total expense ratio income received
5,282,855
5,045,113
Total expense ratio expenses paid
(5,282,855)
(5,045,113)
Net cash used in operating activities
-
-
Cash flows from financing activities:
Interest received
45
-
Interest paid
(53)
(146)
Net cash used in financing activities
(8)
(146)
Net decrease in cash and cash equivalents
(8)
(146)
Cash and cash equivalents at beginning of the financial year
27,351
29,084
Effect of foreign exchange rate changes
(494)
(1,587)
Cash and cash equivalents at end of the financial year
26,849
27,351
Cash and cash equivalents at end of the financial year is comprised of:
Cash and cash equivalents
26,849
27,351
Non-cash Transactions during the year include:
$
$
Issuance of ETC Securities
1,662,804,649
2,993,030,455
Redemptions of ETC Securities
(2,108,892,510)
(1,536,249,487)
Additions of Precious metals
1,660,591,914
2,993,030,533
Disposals of Precious metals
(2,114,159,371)
(1,541,334,780)
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
25
1. General
Amundi Physical Metals plc (the “Company”), the reporting entity, was incorporated on 4 December 2018 as
a public limited company with limited liability under the Companies Act 2014 (the “Companies Act”), as
amended, with registration number 638962. The Company commenced operations on 21 May 2019. The
registered office of the Company is at 2nd Floor, Palmerston House, Fenian Street, Dublin 2, Ireland.
The Company has been established as a special purpose vehicle for the purpose of issuing asset-backed
securities. The Company has established a secured precious metal linked securities programme (the
“Programme”) under which exchange-traded, secured precious metal linked debt securities (“ETC Securities”),
backed by physical holdings of the relevant precious metal, may be issued from time to time. The objective is
for the value of the ETC Securities to reflect, at any given time, the price of precious metals at that time (as
reflected in the Metal Reference Price), less fees and expenses. Capitalised terms are included in the
Company’s prospectus.
The ETC Securities are admitted to trading on regulated markets and they are offered to the public in any
Member State of the European Economic Area or the United Kingdom subject to the selling restrictions set
out in the base prospectus. Accordingly, the Company is also regulated by the markets in financial instruments
directive (the “MiFID II Directive” 2014/65/EU). The information document about the series of ETC Securities
is issued pursuant to the Packaged Retail Investment and Insurance-based Products regulation (the “PRIIPs
regulation” (EU) No 1286/2014”).
The authorised share capital of the Company is EUR 25,000, divided into 25,000 ordinary shares of EUR 1 each,
all of which have been issued and fully paid up. All of the ordinary shares of the Company are held by Cafico
Trust Company Limited as share trustee on trust for charitable purposes. The ETC Securities are denominated
in US Dollar (“USD” or “$”) and the Early Redemption Amount and Final Redemption Amount (as applicable)
will be paid in USD.
Subscription
An Authorised Participant may request the Company to issue further ETC Securities to such Authorised
Participant. Prior to settlement of a Subscription, the Authorised Participant will be required to transfer to an
unallocated account of the Company with the Custodian marked for such Series an amount of Metal equal to
the product of the Metal Entitlement on the relevant trade date and the total number of ETC Securities being
issued. The Company will not issue ETC Securities to an Authorised Participant until the Subscription
Settlement Amount has been received in the Unallocated Account and allocated to the Allocated Account for
the Series. In connection with each Subscription, the Authorised Participant will also be required to pay to the
Company a subscription fee.
Redemption of Buy back
An Authorised Participant may request that the Company buys back ETC Securities from such Authorised
Participant. Prior to settlement of a Buy-Back, the Authorised Participant will be required to deliver to the
Issuing and Paying Agent on behalf of the Company the relevant ETC Securities being bought back. The
Company will not cancel such ETC Securities and deliver to the Authorised Participant an amount of Metal
equal to the product of the Metal Entitlement on the relevant trade date and the total number of ETC
Securities being bought back, until the Issuing and Paying Agent has confirmed receipt of such ETC Securities.
In connection with each Buy-Back, the Authorised Participant will also be required to pay to the Company a
buy-back fee.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
26
1. General (continued)
The "Early Redemption Amount" for a Series shall be an amount (which amount may incorporate an interest
redemption premium, being any excess over the issue price per ETC Security for the first tranche of such
Series) denominated in USD per ETC Security equal to the greater of:
(i) the product of (a) the Metal Entitlement (expressed in fine troy ounces) as at the date specified in the
relevant notice designating a Call Redemption Event, a VAT Redemption Event, a Service Provider Non-
Replacement Redemption Event, a Market Value Redemption Event or an Event of Default, as applicable (the
"Early Redemption Trade Date", subject to postponement in certain circumstances) and (b) the average price
ascribed to each fine troy ounce of Metal held in the Allocated Account on the Early Redemption Trade Date
based on (1) the proceeds received on any Metal sold prior to the fifth Business Day immediately preceding
the 40th Business Day following the Early Redemption Trade Date (such 40th Business Day following the Early
Redemption Trade Date, the "Metal Sale Cut-Off Date") and (2) the reference price for the Metal as published
on the relevant price source for such Series (or any successor or replacement price source) in respect of any
Metal not sold prior to the fifth Business Day immediately preceding the Metal Sale Cut-Off Date; and (ii) the
Nominal Amount plus the Specified Interest Amount.
The "Final Redemption Amount" for a Series shall be an amount (which amount may incorporate an interest
redemption premium, being any excess over the issue price per ETC Security for the first tranche of such
Series) denominated in USD per ETC Security equal to the greater of:
(i) the product of (a) the Metal Entitlement (expressed in fine troy ounces) as at the date falling 40 Business
Days prior to the scheduled maturity date (the "Final Redemption Valuation Date", subject to postponement
in certain circumstances) and (b) the average price ascribed to each fine troy ounce of Metal held in the
Allocated Account on the Final Redemption Valuation Date based on (1) the proceeds received on any Metal
sold prior to the fifth Business Day immediately preceding the scheduled maturity date and (2) the reference
price for the Metal as published on the relevant price source for such Series (or any successor or replacement
price source) in respect of any Metal not sold prior to the fifth Business Day immediately preceding the
scheduled maturity date; and (ii) an amount equal to 10 percent of the issue price per ETC Security on the
Series Issue Date (the "Nominal Amount") plus an amount equal to 1 percent of the Nominal Amount (the
"Specified Interest Amount").
As at 31 March 2023, the Company has Amundi Physical Gold ETC as the only Series of ETC Securities in issue.
The Company’s ETC Securities were listed on Euronext Amsterdam and Euronext Paris on 28 May 2019 and
listed on Deutsche Börse on 2 July 2019. On 18 May 2020, the ETC Securities were listed on the London Stock
Exchange. On 1 January 2023, the ETC Securities were listed on Bolsa Institucional de Valores. On 16 March
2023, the ETC Securities were listed on Borsa Italiana.
The ETC Securities offer investors exposure to the movements of the precious metals’ spot price. The ETC
Securities are backed by physically allocated precious metals, which is held by HSBC Bank Plc (the “Custodian”).
Each physical bar is held in a segregated account, individually identified and allocated.
The Company has appointed HSBC Bank plc as metal counterparty (the “Metal Counterparty”) in respect of
the Series.
The administration of the Company has been delegated to HSBC Securities Services (Ireland) DAC (the
“Administrator”). HSBC Corporate Trustee Company (UK) Limited was appointed as Trustee and Security
Trustee and HSBC Continental Europe was appointed as Issuing and Paying Agent.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
27
1. General (continued)
The arranger (the “Arranger”) is Amundi Asset Management S.A.S who also acts as an adviser (the “Advisor”)
to the Company in respect of the Series, performing certain functions and determinations on behalf of the
Company pursuant to an advisory agreement (the “Advisory Agreement”). Expenses paid to the Advisor and
the term of the advisor expenses are discussed in Note 7 of the financial statements.
The ETC Securities are secured, limited recourse obligations of the Company and the ETC Securities of a series
rank equally amongst themselves.
2. Basis of preparation
(a) Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards
as adopted for use in the European Union (“IFRS”), and in accordance with the Companies Act.
The accounting policies set out below have been applied in preparing the financial statements for the financial
year ended 31 March 2023 and 31 March 2022.
The Directors review the performance and risks associated with the Company’s operations and structure on a
regular basis throughout the financial year and at the time of approving the financial statements. The Directors
believe that the Company will continue in operation for a period of at least 12 months from the date that
these financial statements are approved. The Directors are satisfied that it is appropriate to adopt the going
concern basis of accounting in preparing the Company’s financial statements.
(b) Changes in accounting policies
New standards, amendments and interpretations to existing standards which are effective from 1 January
2022
Standards/interpretations
Effective date
Reference to the Conceptual Framework with amendments to IFRS 3 ‘Business
Combinations’
01 Jan 2022
Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)
01 Jan 2022
The application of the above amendments did not have a significant impact on the financial statements of the
Company.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
28
2. Basis of preparation (continued)
(b) Changes in accounting policies (continued)
New standards and amendments to standards that are relevant to the Company
Standards/interpretations
Effective date
IFRS 17 Insurance Contracts
01 Jan 2023
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
01 Jan 2023
Classification of liabilities as current or non-current (Amendments to IAS 1)
01 Jan 2023
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
01 Jan 2023
Definition of Accounting Estimate (Amendments to IAS 8)
01 Jan 2023
Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction
Amendments to IAS 12 Income Taxes
01 Jan 2023
Amendments to IAS 1 Presentation of Financial Statements
01 Jan 2024
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
01 Jan 2024
None of the above standards, amendments and interpretations are expected to have a significant impact on
the Company’s financial statements.
(c) Basis of measurement
The financial statements have been prepared under the historical cost basis, except for the following:
Precious metals at fair value through profit or loss are measured at fair value; and
Financial liabilities designated at fair value through profit or loss are measured at fair value.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
29
2. Basis of preparation (continued)
(d) Functional and presentation currency
The financial statements and notes to the financial statements are presented in US Dollar (“USD” or “$”) which
is the Company’s functional currency. Functional currency is the currency of the primary economic
environment in which the entity operates. Gold prices are usually stated in USD and the financial liabilities
designated at fair value through profit or loss are also primarily denominated in USD. The Directors of the
Company believe that USD most faithfully represents the economic effects of the underlying transactions,
events and conditions.
(e) Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that may affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Under IFRS there is no specific standard to refer to for the
accounting treatment of precious metals. The precious metals are held to provide the ETC security holders
with exposure to changes in the value of the precious metals. Therefore, the Company has determined that
the measurement of precious metals at fair value through profit or loss is the appropriate measurement of
precious metals which is consistent with the treatment that would be applicable to a financial instrument and
reflects the objectives and the purpose of holding this asset.
3. Significant accounting policies
The significant accounting policies adopted by the Company are:
(a) Financial instruments
(i) Initial recognition
All financial assets and all financial liabilities (including financial liabilities designated at fair value through
profit or loss) are recognised initially on the trade date, which is the date that the Company becomes a party
to the contractual provisions of the instrument.
(ii) Classification
The Company has classified financial assets and financial liabilities into the following categories:
Financial liabilities designated at fair value through profit or loss:
ETC securities designated at fair value and ETC Securities awaiting settlement through profit or loss
Financial assets at amortised cost:
Cash and cash equivalents and other receivables
Financial liabilities at amortised cost:
Due to advisor
The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is
measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using
the effective interest rate method or any difference between the initial amount recognised and the maturity
amount, minus any reduction for impairment. The carrying value of cash and cash equivalents, other
receivables and due to advisor are assumed to approximate their fair values.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
30
3. Significant accounting policies (continued)
(a) Financial instruments (continued)
(iii) Subsequent measurement
After initial measurement, the Company measures financial instruments which are classified as at fair value
through profit or loss at their fair value. Subsequent changes in the fair value of financial instruments and
financial liabilities designated at fair value through profit or loss are recognised directly in the profit or loss in
the Statement of Comprehensive Income
(iv) Derecognition
The Company derecognises a financial asset when the contractual rights to the asset expire, or it transfers the
rights to the financial asset in a transaction in which substantially all the risks and rewards of ownership of the
financial asset are transferred. The Company derecognises a financial liability when its contractual obligations
are discharged, cancelled or expire.
(b) ETC Securities
(i) Issue and redemption of ETC Securities
The Company issues Exchange Traded Commodity (“ETC”) Securities to provide investors with exposure to the
performance of precious metals. The ETC Securities are issued in the form of debt instruments that are backed
by fully allocated physical holdings of the relevant precious metal. A security is issued or redeemed when a
corresponding amount of precious metal has transferred into or from the allocated accounts maintained by
the Company’s Custodian. ETC Securities are recognised and derecognised at transaction date. Investing in
the ETC Securities will not make an investor the owner of the precious metal held by the Custodian (or a Sub-
Custodian on behalf of the Custodian) in respect of the relevant Series. Any early or final redemption of the
ETC Securities of a Series will be settled in cash. The ETCs scheduled maturity date is 23 May 2118.
(ii) Classification and measurement of ETC Securities
ETC Securities comprise a financial instrument whose redemption price is linked to exchange quoted prices.
The ETC Securities represent a non-financial obligation that is required to be settled and therefore it is a
financial liability, because the Company can avoid payment only by settling the non-financial obligation i.e.
settlement of the non-financial obligation of the ETC Securities by returning the underlying precious metal
holdings. The Company designates the ETC Securities issued as financial liabilities at fair value through profit
or loss both on initial recognition and on an ongoing basis as a result of the derivative embedded in the ETC
securities. The fair value of the ETC Securities is determined by reference to the exchange quoted value of the
ETC Securities which is the London Bullion Market Association (“LBMA”) 3 pm gold price. The exchange quoted
value of the ETC Securities is determined by reference to the underlying precious metal holdings and adjusted
for the TER payable to the Arranger and Adviser. Changes in the fair value of the ETC Securities are recognised
in the Statement of Comprehensive Income.
(c) ETC Securities awaiting settlement through profit or loss
ETC Securities awaiting settlement through profit or loss comprise of redeemed and cancelled ETC Securities
which have not yet settled
(d) Precious metals
The Company holds precious metals at least equal to the amount due to holders of ETC Securities solely for
the purposes of meeting its obligations under the ETC Securities. The precious metals are measured at fair
value and changes in fair value are recognised in the Statement of Comprehensive Income.
Any costs to sell precious metal that arise in the course of settling the Company’s obligations under the ETC
Securities are borne by the holders of the ETC Securities (“ETC Security holders”).
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
31
3. Significant accounting policies (continued)
(d) Precious metals (continued)
The precious metal is recognised when the metal is received into the vault of the Custodian. The precious
metal is derecognised when the risks and rewards of ownership have all been substantially transferred
through the withdrawal of the precious metals from the vault of the Custodian.
(e) Determining the fair value of precious metal
The fair value of precious metals as at 31 March 2023 is determined by the current bid price for the precious
metals using the LBMA price.
(f) Foreign currency transactions
Transactions in foreign currencies are translated into the functional currency at the date of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into
the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated into the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using
the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are
recognised in the Statement of Comprehensive Income.
(g) Cash and cash equivalents
Cash and cash equivalents is comprised of an interest-bearing account opened with HSBC Bank plc in the name
of the Company and operated by the Company or the Administrator (as authorised by the Company), into
which amounts received by or on behalf of the Company shall be paid from time to time, including but not
limited to the net actual redemption sale proceeds.
(h) TER Expenses
Total Expense Ratio (“TER”) is the rate per annum at which the “all in one” operational fee which is payable
to the Advisor in respect the Series is calculated. The TER expense is accounted for on an accruals basis and is
payable monthly in arrears.
(i) Due to advisor
Due to advisor is comprised of outstanding TER expense which is payable to the Advisor at the year end.
(j) Revenue recognition
Revenue is recognised to the extent that the economic benefits will flow to the Company and the revenue can
be reliably measured. Revenue is measured at the fair value of the consideration received, excluding
corporation tax.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
32
3. Significant accounting policies (continued)
(j) Revenue recognition (continued)
TER is applied to the Metal Entitlement on a daily basis. Each day, the Metal Entitlement attached to each ETC
Security is reduced at a rate equal to the portion of the TER in metal applicable to such day. The resulting
proceeds are recognized as TER income in the Statement of Comprehensive Income.
Fees received for the issue or redemption of precious metals are recognised at the point the precious metals
are recognised or derecognised on the Statement of Financial Position. All other income and expenses are
recognised on an accruals basis.
(k) Net gains arising on precious metals at fair value
Net gains arising on precious metals at fair value relates to the movement in the prices of metals and includes
all realised and unrealised fair value changes. Any gains and losses arising from changes in fair value of the
precious metals are recorded in net gains arising on precious metals at fair value in the Statement of
Comprehensive Income.
(l) Net losses arising on ETC securities designated at fair value
Net losses arising on ETC securities designated at fair value relates to ETC Securities issued and includes all
realised and unrealised fair value changes. Any gains and losses arising from changes in the fair value of the
ETC securities designated at fair value are recorded in net losses arising on ETC securities designated at fair
value in the Statement of Comprehensive Income. Details of recognition and measurement of financial
liabilities are disclosed in the accounting policy of financial instruments (note 3(a)). Further details regarding
the application of IFRS 13 are disclosed in note 4(d).
(m) Taxation
Tax on profit on ordinary activities is recognised in the Statement of Comprehensive Income. Current tax is
calculated on taxable income for the financial year using tax rates applicable to the Company’s activities at
the financial year end date.
(n) Other income
Other income is accounted for on an accruals basis.
(o) Segmental reporting
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the
Company that are regularly reviewed by the Chief Operating Decision Maker ("CODM") in order to allocate
resources to the segments and to assess their performance. The CODM has been determined as the board of
directors. A segment is a distinguishable component of the Company that is engaged either in providing
products or services (business segment), or in providing products and services within a particular economic
environment (geographical segment), which is subject to risks and rewards that are different from those of
other segments.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
33
3. Significant accounting policies (continued)
(o) Segmental reporting (continued)
The Company has not provided segmental information as the Company has only one business or product
group, issuing ETC Securities, and one geographical segment which is United Kingdom. In addition, the
Company has no single major customer from which greater than 10% of revenue is generated. All information
relevant to the understanding of the Company's activities is included in these financial statements.
4. Financial instruments and risks
The Company’s activities expose it to the various types of risk which are associated with the precious metals,
ETC Securities and the markets in which it operates.
The Board review half yearly investment performance reports and receive half yearly presentations from the
Arranger and Advisor covering the Company’s performance and risk profile during the financial year. The
Board has appointed the Arranger and Advisor to act on behalf of the Company under the terms and
conditions of the ETC Securities and the Company’s transaction documents.
The risk exposure of the Company is set out as follows:
(a) Market risk
Market risk arises mainly from uncertainty about future values of precious metal influenced by price
movements. It represents the potential loss on the ETC may suffer through holding market positions in the
face of market movements. Precious metals are generally more volatile than most other asset classes, making
investments in precious metals riskier and more complex than other investments. The performance of
precious metals is dependent upon various factors, including (without limitation) supply and demand,
liquidity, natural disasters, direct investment costs, location, changes in tax rates, financial markets and
changes in laws, regulations and the activities of governmental or regulatory bodies.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of its assets will fluctuate because of changes
in market interest rates. There is some interest rate risk associated with cash held at bank. However, it is not
considered significant. The Company has no other interest rate risk.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of assets will fluctuate because of
changes in foreign exchange rates. The Company does not have significant exposure to foreign currency risk
as subscriptions and buy-backs are predominantly carried out by transfers of precious metal. Company’s
functional currency is USD and the ETC securities are denominated in USD. The Company maintains an amount
of foreign currency in relation to the equity share capital of the Company, held in a Euro denominated account,
however the associated risk is insignificant.
(iii) Other price risk
Other price risk is the risk that the fair value or future cash flows of precious metals or ETC Securities will
fluctuate because of changes in market prices whether those changes are caused by factors specific to the
metals, the individual ETC Securities or the Company, or factors affecting similar assets or ETC Securities
traded in the market. The Company is exposed to other price risk arising from its holding of precious metals.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
34
4. Financial instruments and risks (continued)
(a) Market risk (continued)
(iii) Other price risk (continued)
The movements in the prices of these holdings result in movements in the performance of the Company.
The market price of the Series of ETC Securities will be affected by a number of factors, including, but not
limited to:
the value and volatility of the precious metal referenced by the relevant Series of ETC Securities;
the value and volatility of metals in general;
market perception, interest rates, yields and foreign exchange rates;
the creditworthiness of, among others, the Custodian, the Administrator, the Registrar, the
Authorised Participants and each Metal Counterparty (i.e. HSBC Bank plc); and
liquidity in the ETC Securities on the secondary market.
The Company does not consider other price risk to be a significant risk to the Company as any fluctuation in
the value of the precious metal will ultimately be borne by the ETC Security holders except for circumstances
as explained in Note 1 for early or final redemptions. Therefore, assuming all other variables remain constant
a 15% increase (15% is used as this is reflective of the variance of the gold price average movement from its
closing price over the period 1 April 2022 to 31 March 2023) in the market price of the precious metals as at
31 March 2023 would have increased the value of the ETC Securities issued by USD 657,931,556 (31 March
2022: 15% increase in the market price of the precious metals would have increased the value of the ETC
Securities issued by USD 727,356,730 (15% is used as this is reflective of the variance of the gold price average
movement from its closing price over the period 1 April 2021 to 31 March 2022)). An equal change in the
opposite direction would have decreased the value of the ETC Securities issued by an equal but opposite
amount.
(b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with its
ETC Securities. The Company limits its exposure to liquidity risk through the purchase of Precious metals. All
liquidity risk associated with the Precious metals are ultimately borne by the ETC Security holders.
The contractual maturity profile of financial liabilities as at 31 March 2023 is as follows:
Carrying amount
$
Gross contractual
cash flows
$
Less than one
year
$
ETC Securities designated at fair value through
profit or loss
4,387,979,851
4,387,979,851
4,387,979,851
ETC Securities awaiting settlement through profit
or loss
6,255,121
6,255,121
6,255,121
Other payables
443,159
443,159
443,159
4,394,678,131
4,394,678,131
4,394,678,131
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
35
4. Financial instruments and risks (continued)
(b) Liquidity risk (continued)
The contractual maturity profile of financial liabilities as at 31 March 2022 is as follows:
Carrying amount
$
Gross contractual
cash flows
$
Less than one
year
$
ETC Securities designated at fair value through
profit or loss
4,836,230,909
4,836,230,909
4,836,230,909
ETC Securities awaiting settlement through profit
or loss
12,342,883
12,342,883
12,342,883
Other payables
471,072
471,072
471,072
4,849,044,864
4,849,044,864
4,849,044,864
Due to the fact that the ETC Security holders have the option to redeem the securities at any date before the
final scheduled maturity date, the ETC securities designated at fair value have been classified as due in less
than one year. Maturity date of ETC Securities is 23 May 2118.
The carrying amount and the gross contractual cash flows are equal to the fair value of each liability as stated
in the Statement of Financial Position.
Risks relating to the Nominal Amount and the Specified Interest Amount
Each of the Early Redemption Amount and the Final Redemption Amount incorporates the concept of the
Nominal Amount and the Specified Interest Amount, which entitles the Security holder, following an Early
Redemption Event or on the Scheduled Maturity Date, as applicable, to a minimum repayment of an amount
in respect of each ETC Security equal to the sum of (i) 10 percent of the Issue Price per ETC Security as at the
Series Issue Date of the relevant Series (being the Nominal Amount) and (ii) 1 percent of the Nominal Amount
(being the Specified Interest Amount).
Due to the limited recourse nature of the ETC Securities, in respect of each ETC Security of a Series, in the
event that the proceeds of liquidation of the Metal comprising the Metal Entitlement for such ETC Security is
insufficient to fund the Nominal Amount and the Specified Interest Amount of such ETC Security in full, the
holder of such ETC Security may not receive payment of the Nominal Amount and/or the Specified Interest
Amount in full and may receive substantially less. In respect of each ETC Security, payment of the Specified
Interest Amount to Security holders will rank in priority to payment of the Nominal Amount.
In order to minimise the likelihood that the proceeds of liquidation of the Metal comprising the Metal
Entitlement for each ETC Security of a Series is insufficient to fund the Nominal Amount and the Specified
Interest Amount of such ETC Security, the ETC Securities for such Series may be early redeemed in full at the
option of the Company or, by power of an Extraordinary Resolution, the Security holders where the value of
an ETC Security of such Series on two consecutive non-disrupted days is equal to or below a market value
trigger, being 20 percent of the Issue Price per ETC Security as at the Series Issue Date of such Series.
Early Redemption Events and Events of Default
The ETC Securities of a Series may become due and payable in connection with the occurrence of any of the
following events:
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
36
4. Financial instruments and risks (continued)
(b) Liquidity risk (continued)
Early Redemption Events and Events of Default (continued)
(i) The Company is, or there is a substantial likelihood that it will be, required by any applicable law to make a
payment in respect of VAT, register for VAT or be otherwise required to account for VAT in respect of a delivery
of Metal in respect of a Subscription Order, a Buy-Back Order or a sale of TER Metal, or the Company has
become liable, or become aware that it is liable, for VAT in respect of a prior delivery of Metal (in each case
whether or not such VAT is recoverable);
(ii) the Advisor, the Administrator, the Custodian, the Issuing and Paying Agent, all of the Authorised
Participants and/or the Metal Counterparty in relation to such Series resign or their appointment in relation
to such Series is terminated for any reason and the Company gives notice that no successor or replacement
has been appointed within 120 calendar days of the date of notice of resignation or termination or the date
of any automatic termination, as applicable;
(iii) the prevailing value of an ETC Security on two consecutive non-disrupted days (calculated by the
Administrator by reference to each ETC Security’s Metal Entitlement and the Metal Reference Price on each
such non-disrupted day) is less than or equal to 20 percent of the Issue Price per ETC Security as at the Series
Issue Date; or
(iv) an Event of Default occurs under the ETC Securities and the Trustee gives the relevant notice.
Consequences of a Call Redemption Event, an Early Redemption Event or an Event of Default
The ETC Securities of a Series may be redeemed early in full following the occurrence of a Call Redemption
Event, an Early Redemption Event or an Event of Default if the Company (and/or, in the case of either of the
events designated under paragraphs (iii) and (iv) of “Early Redemption Events and Events of Default” above,
the Trustee following requisite direction by the Security holders) has given notice designating an early
redemption of the ETC Securities in full following the occurrence of such event. If such notice has been
provided, each outstanding ETC Security of such Series (and not necessarily all Series given that other Series
may not be affected by such Call Redemption Event, Early Redemption Event or Event of Default) shall become
due and payable on the Early Redemption Settlement Date at its Early Redemption Amount.
Risks relating to the Final Redemption Amount or, if applicable, the Early Redemption Amount
Final Redemption Amount and Early Redemption Amount are defined and discussed in detail in Note 1.
The Metal Counterparty may not be able to liquidate the full Underlying Metal in respect of the Series being
redeemed in one day and may need to liquidate such Underlying Metal over a series of days. The price by
reference to which the Metal Counterparty liquidates Underlying Metal on behalf of the Company (a Metal
Reference Price or market spot price) may fluctuate and assuming all other factors remain constant, lower
Metal prices during the relevant Redemption Disposal Period will lead to a lower Early Redemption Amount
or Final Redemption Amount, as applicable, payable.
The Metal Counterparty will attempt to liquidate the Underlying Metal in respect of the relevant Series
regardless of the level of the Metal Reference Price or market spot price applicable to the sale, provided that
it will only liquidate the Metal at a lower price if it is unable to liquidate the Metal at a fair market price.
The Company’s liquidity risk is managed by the Arranger and Advisor in accordance with established policies
and procedures in place.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
37
4. Financial instruments and risks (continued)
(c) Counterparty credit risk
Counterparty credit risk is the risk that the counterparty to a transaction will fail to fulfil an obligation or
commitment that it has entered into with the Company. The Company’s principal assets are precious metals
at fair value through profit or loss, cash and cash equivalents and other receivables which represents the
Company's maximum exposure to credit risk. All credit risks are ultimately borne by the ETC Security holders.
31 March 2023
$
31 March 2022
$
Cash and cash equivalents
26,849
27,351
Precious metals at fair value through profit or loss
4,392,465,492
4,849,044,864
Other receivable
13,072
9,984
4,392,505,413
4,849,082,199
The Company’s Custodian is HSBC Bank plc (the “Custodian”). The Company’s ability to meet its obligations
with respect to the ETC Securities is dependent upon the performance of the Custodian of its obligations under
the relevant Custody Agreement. Secured Property (metal held in allocated accounts in the Custodial network)
in respect of the Series is held by the Custodian. Consequently, the ETC Security holders are relying on the
creditworthiness of the Custodian and/or any relevant Sub-Custodian. The precious metals are segregated
from the assets of the Custodian into allocated accounts, with ownership rights remaining with the Company.
As at 31 March 2023, the Company held Precious metals at fair value of USD 4,392,465,492 (31 March 2022:
USD 4,849,044,864) with the Custodian.
The Company and, consequently, ETC Security holders will be at risk if the Custodian does not, in practice,
maintain such a segregation. In order to mitigate the risk of the Custodian not segregating and/or allocating
underlying metal, the Custody Agreement provides that the Custodian will maintain a list setting out the vault
location and serial identification numbers of all bars, plates or ingots of underlying metal held by the Custodian
for the benefit of the Company in the allocated account(s) and will update this list on at least a daily basis.
Furthermore, the Company’s risk exposure to the Custodian is reduced as it issues ETC Securities only after
the metal representing the subscription settlement amount has been deposited to the allocated accounts.
While the Company has put in place this arrangement to minimise the holding of metal in unallocated
accounts, there may be short periods of time during which underlying metal may pass through unallocated
accounts. Bankruptcy or insolvency of the Custodian may cause the Company’s rights with respect to its
precious metals to be delayed or limited.
To mitigate the Company’s exposure to the Custodian, the Arranger and Advisor employs specific procedures
to ensure that the Custodian is a reputable institution and that the counterparty credit risk is acceptable to
the Company. The Company only transacts with Custodians that are regulated entities subject to prudential
supervision, or with high credit ratings assigned by international credit rating agencies.
The long term Standard and Poor’s credit rating of the Custodian as at 31 March 2023 is A+ (31 March 2022:
A+).
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
38
4. Financial instruments and risks (continued)
(c) Counterparty credit risk (continued)
The precious metals are held by the Custodian in its vault premises. The Custodian has no obligation to
maintain insurance specific to the Company or specific only to the precious metals held for the Company
against theft, damage or loss, however insurance is maintained in connection with the Custodian’s business
including in support of its obligations to the Company under the Custodian Agreement.
There is a risk that the precious metals could be lost, stolen or damaged and the Company would not be able
to satisfy its obligations in respect of the ETC Securities. In such an event the Company may, with the consent
of the Trustee and the Arranger and Advisor, adjust the Metal Entitlement of each Security of the relevant
Series to the extent necessary to reflect such damage or loss.
The Company has no net credit risk given its obligations to the ETC Security holders are limited in recourse to
the amount received on the Precious metals for ETC Securities.
Geographical location
At the reporting date, the Company's Precious metals were concentrated in the following geographical
location:
31 March 2023
31 March 2022
Country of origin
%
%
United Kingdom*
100
100
100
100
*The precious metals are held in a vault in the United Kingdom.
(d) Valuation of financial instruments
The Company is required to classify fair value measurements using a fair value hierarchy that reflects the
significance of inputs used in making the measurements.
Fair value measurements
IFRS 13 establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy are described below.
Level 1
Inputs that reflect unadjusted quoted prices in active markets for identical assets or
liabilities that the Company has the ability to access at the measurement date;
Level 2
Inputs other than quoted prices that are observable for the asset or liability either
directly or indirectly, including inputs in markets that are not considered to be active;
Level 3
Inputs that are unobservable.
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market
participants use to make valuation decisions, including assumptions about risk. Inputs may include price
information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial
instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to
the fair value measurement.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
39
4. Financial instruments and risks (continued)
(d) Valuation of financial instruments (continued)
Fair value measurements (continued)
However, the determination of what constitutes “observable” requires judgement by the Arranger and
Advisor. The Arranger and Advisor consider observable data to be that market data which is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources
that are actively involved in the relevant market.
Precious metals at fair value and ETC Securities in relation to the Series are classified within level 1 due to the
use of unadjusted quoted prices in active markets. These prices are derived from the secondary market where
listed securities are traded.
As at 31 March 2023 and 31 March 2022, the Company did not hold any level 3 securities and there were no
transfers between levels during the year, consequently no reconciliation of Level 3 fair value measurements
is required.
The following table presents financial liabilities and precious metals measured at fair value on the Statement
of Financial Position by investment type and by level within the valuation hierarchy as at 31 March 2023:
Level 1
Level 2
Level 3
Total
$
$
$
$
Precious metals at fair value through
profit or loss
4,392,465,492
-
-
4,392,465,492
Level 1
Level 2
Level 3
Total
$
$
$
$
ETC Securities designated at fair value
(4,387,979,851)
-
-
(4,387,979,851)
ETC securities awaiting settlement
through profit or loss
(6,255,121)
(6,255,121)
Total
(4,394,234,972)
(4,394,234,972)
The following table presents financial liabilities and precious metals measured at fair value on the Statement
of Financial Position by investment type and by level within the valuation hierarchy as at 31 March 2022:
Level 1
Level 2
Level 3
Total
$
$
$
$
Precious metals at fair value through
profit or loss
4,849,044,864
-
-
4,849,044,864
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
40
4. Financial instruments and risks (continued)
(d) Valuation of financial instruments (continued)
Fair value measurements (continued)
Level 1
Level 2
Level 3
Total
$
$
$
$
ETC Securities designated at fair value
(4,836,230,909)
-
-
(4,836,230,909)
ETC securities awaiting settlement
through profit or loss
(12,342,883)
(12,342,883)
Total
(4,848,573,792)
(4,848,573,792)
Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the
Company’s processes and infrastructure, and from external factors other than credit, markets and other price
risk and liquidity issues such as those arising from legal and regulatory requirements and generally accepted
standards of corporate behaviour.
Operational risks arise from all of the Company’s operations. The Company was incorporated with the purpose
of engaging in those activities outlined in note 1. All administration functions are outsourced to HSBC
Securities Services (Ireland) DAC. Cafico Corporate Services Limited provides Corporate Services. Amundi Asset
Management S.A.S acts as arranger and advisor. HSBC Continental Europe acts as issuing and paying agent.
Trustee and Security Trustee services are carried out by HSBC Corporate Trustee Company (UK) Limited. HSBC
Bank plc acts as custodian and metal counterparty.
The Company consistently monitors its operational risk due to the reliance on third party service providers.
As discussed in note 2, the Company monitors the effect that the current economic climate is having on the
service providers that the Company uses but the Company does note any material risks.
5. Net gains arising on precious metals at fair value
Financial year ended
31 March 2023
Financial year ended
31 March 2022
$
$
Net gains arising on precious metals
9,330,968
502,796,843
9,330,968
502,796,843
6. Net losses arising on ETC securities designated at fair value
Financial year ended
31 March 2023
Financial year ended
31 March 2022
$
$
Net losses arising on ETC securities
(9,331,651)
(502,798,840)
(9,331,651)
(502,798,840)
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
41
7. Company Series Fees and Expenses
Each ETC Security of a Series will have a “Metal Entitlement”, which is an amount in weight of the Metal linked
to such Series. On the Series Issue Date, each ETC Security is ascribed with a Metal Entitlement (the “Initial
Metal Entitlement”) and on each subsequent day, the Metal Entitlement of each ETC Security shall be reduced
by a percentage (the “Total Expense Ratio”, or “TER”) determined as sufficient to fund the Company’s “all in
one” operational fee to the Advisor (which the Advisor will use, in turn, to pay the agreed fees of all of the
other service providers of the Company).
Fees and expenses payable on a monthly basis by the Company to the Advisor will be paid out of the proceeds
of the relevant Series of ETC Securities and funded by way of the monthly sale of Metal deducted on a daily
basis from the Metal Entitlement of the ETC Securities of such Series at a rate equal to the portion of the Total
Expense Ratio applicable to each day. Agreed fees and expenses payable to the Company’s service providers,
including the Corporate Services Provider, the Trustee, the Security Trustee, the Custodian, the Administrator
and other Agents will be paid by the Advisor out of the proceeds of the sale of Metal mentioned in the previous
sentence. None of the above-mentioned transaction parties may have recourse to assets of the Company
which are held as security for ETC Securities of any Series other than the ETC Securities of the Series in respect
of which the claim arises.
The TER as at 31 March 2023 is 0.12% (2022: 0.12%). TER income for the year amounted to USD 5,239,097 (31
March 2022: USD 5,157,245) and TER expense for the year amounted to USD 5,239,044 (31 March 2022: USD
5,157,099).
Fees and expenses payable on a monthly basis by the Company to the Arranger and Advisor will be paid out
of the relevant Series of ETC Securities by way of the sale of metal. The amount of metal to be sold is a
predetermined amount based on the Metal Entitlements of the ETC Securities of the Series. Fees earned by
the Arranger and Advisor during the financial year and balances outstanding as at 31 March 2023 are disclosed
in Note 7 and Note 12 respectively.
For the financial year ended 31 March 2023, the Directors did not receive remuneration or fees in respect to
their service (31 March 2022: Nil). Cafico Corporate Services Limited as Corporate Services Provider for the
Company receives an annual fee applicable for the year for the different services provided which amounted
to USD 59,092 (31 March 2022: USD 42,999). Refer Note 15 for Directors’ remuneration arrangement.
Auditor’s fees for the financial year ending 31 March 2023 amounted to USD 57,258 (31 March 2022: USD
26,274) excluding VAT. Fees for the statutory auditor, KPMG Ireland, in respect of the financial year ending 31
March 2023 and 31 March 2022, relate entirely to the audit of the financial statements of the Company. Tax
services of USD 5,205 (2022: USD 5,813) were provided by KPMG Ireland to the Company. Auditor’s fees are
paid out of the TER.
Financial year ended
31 March 2023
Financial year ended
31 March 2022
USD
USD
Audit
57,258
26,274
Other assurance
-
-
Tax advisory Services
5,205
5,813
Other non-audit
-
-
Total
62,464
32,086
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
42
8. Income Tax
The Company will be taxable as a securitisation Company pursuant to Section 110 of the Taxes Consolidation
Act (“TCA”) 1997. Profits arising to the Company are charged at a corporate tax rate of 25%. All expenses that
are not capital in nature and are for the purposes of the Company’s activities will be deductible from income
in order to determine taxable profits.
The Company is a qualifying Company within the meaning of Section 110 of the TCA. As such, the profits are
chargeable to corporation tax under Case III of Schedule D of the TCA at the rate of 25% but are computed in
accordance with the provisions applicable to Case I Schedule D of the TCA.
Financial year ended
31 March 2023
Financial year ended
31 March 2022
$
$
Net profit for the financial year before tax
2,630
1,331
Corporation tax rate at 25%
(658)
(331)
Income tax expense
(658)
(331)
9. Share Capital
The authorised share capital of the Company is EUR 25,000 divided into 25,000 ordinary shares of EUR 1 each,
all of which have been issued and fully paid up. All of the ordinary shares of the Company are held by Cafico
Trust Company Limited as share trustee on trust for charitable purposes to the value of EUR 25,000.
Financial year ended
31 March 2023
Financial year ended
31 March 2022
$
$
25,000 ordinary shares of EUR 1 each
27,385
27,385
27,385
27,385
The rights of the trustee representing the shareholders are governed by the declaration of trust. The Company
has only ordinary shares which have no prescribed and/or defined rights.
10. Precious metals at Fair Value
The following tables summarise the activity in metal bullion during the financial year 31 March 2023:
Gold Troy
Ounces*
Balance at the beginning of financial year
2,496,757
Metal contributed
901,627
Metal distributed to ETC holders
(1,176,674)
Metal distributed due to TER
(2,935)
Balance at the end of financial year
2,218,775
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
43
10. Precious metals at Fair Value (continued)
Price per Troy
Ounce**
Fair Value*
Precious metals at fair value
Troy Ounces*
$
$
Gold
2,215,593^
1,979.70
4,386,210,371
Total
2,215,593
1,979.70
4,386,210,371
* Gold is measured in fine troy ounces. Metal amount is rounded to whole numbers. Fair value disclosed is based on unrounded metal
amount.
** Sourced from LBMA.
^ Excludes Gold Troy Ounces of 3,181.97 with a value of $6,255,121 due to holders of ETC Securities who cancelled their shares on 30
March 2023 and are awaiting settlement.
The following tables summarise the activity in metal bullion during the financial year 31 March 2022:
Gold Troy
Ounces*
Balance at the beginning of financial year
1,750,163
Metal contributed
1,629,550
Metal distributed to ETC holders
(880,148)
Metal distributed due to TER
(2,808)
Balance at the end of financial year
2,496,757
Price per Troy
Ounce**
Fair Value*
Precious metals at fair value
Troy Ounces*
$
$
Gold
2,490,385^
1,942.15
4,836,701,981
Total
2,490,385
1,942.15
4,836,701,981
* Gold is measured in fine troy ounces. Metal amount is rounded to whole numbers. Fair value disclosed is based on unrounded metal
amount.
** Sourced from LBMA.
^ Excludes Gold Troy Ounces of 6,372 with a value of $12,342,883 due to holders of ETC Securities who cancelled their shares on 28
March 2022 and are awaiting settlement.
11. ETC Securities designated at Fair Value
The following tables summarise the activity in the ETC Securities of the Series during the financial year 31
March 2023:
Amundi Physical
Gold ETC
No. of Securities
Balance at the beginning of financial year
62,531,327
ETC Securities issued
22,681,921
ETC Securities redeemed
(29,486,937)
Balance at the end of financial year
55,726,311
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
44
11. ETC Securities designated at Fair Value (continued)
Metal entitlement
(Gold) per ETC
Security in Troy
Price per
Security*/**
Fair Value*
No. of Securities
Ounces^
$
$
Amundi Physical Gold ETC^^
55,726,311
0.039758
78.74
4,387,979,851
Total
55,726,311
0.039758
78.74
4,387,979,851
* Price per security is rounded to 2 decimal places. Fair value disclosed is based on the unrounded price per security.
** ETC Securities prices based on exchange quoted prices.
^ Rounded to 6 decimal places.
^^ Final maturity date of ETC Securities is 23 May 2118.
The following tables summarise the activity in the ETC Securities of the Series during the financial year 31
March 2022:
Amundi Physical
Gold ETC
No. of Securities
Balance at the beginning of financial year
42,919,190
ETC Securities issued
40,897,109
ETC Securities redeemed
(21,284,972)
Balance at the end of financial year
62,531,327
Metal entitlement
(Gold) per ETC
Security in Troy
Price per
Security*/**
Fair Value*
No. of Securities
Ounces^
$
$
Amundi Physical Gold ETC^^
62,531,327
0.039826
77.34
4,836,230,909
Total
62,531,327
0.039826
77.34
4,836,230,909
* Price per security is rounded to 2 decimal places. Fair value disclosed is based on the unrounded price per security.
** ETC Securities prices based on exchange quoted prices.
^ Rounded to 6 decimal places.
^^ Final maturity date of ETC Securities is 23 May 2118.
12. Payables
As at 31 March
2023
As at 31 March
2022
$
$
Due to Advisor*
(443,159)
(471,072)
ETC Securities awaiting settlement through profit or loss **
(6,255,121)
(12,342,883)
Total
(6,698,280)
(12,813,955)
*Due to advisor represents the outstanding TER expense which is payable to the Advisor at the year end.
**ETC Securities awaiting settlement through profit or loss comprise of redeemed and cancelled ETC Securities which have not yet
settled.
13. Due from noteholders
As at 31 March 2023, $2,212,639 was due to the Company from the Authorised Participants (2022: Nil).
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
45
14. Exchange rates
The rate of exchange ruling as at 31 March 2023 and 31 March 2022 were:
As at 31 March
2023
As at 31 March
2022
EUR 1 = USD
1.08920
1.1092
15. Related and connected parties
Parties are considered to be related if one party has the ability to control the other party or is able to exercise
significant influence over the party, in making financial or operational decisions.
The Company’s related parties are the Directors and Cafico Corporate Services Limited as Corporate Services
Provider. The Company’s connected parties are the Administrator, the Custodian, the Trustee, the Advisor and
the Issuing and Paying Agent. Amounts incurred during the year to these related and connected parties are
paid by the Advisor from the TER fee (all in one” operational fee) as disclosed in Note 7. The total outstanding
to the Advisor at the Statement of Financial Position date is disclosed in Note 12, if any.
Rolando Ebuna and Máiréad Lyons are Directors of the Company and are also employees of the Corporate
Services Provider, Cafico Corporate Services Limited. All of the ordinary shares of the Company are held by
Cafico Trust Company Limited as share trustee on trust for charitable purposes to the value of EUR 25,000.
During the financial year, the Company incurred a fee of USD 59,092 (31 March 2022: USD 42,999) and USD
Nil (31 March 2022: Nil) payable as at 31 March 2023, relating to different services provided by the Corporate
Services Provider. The directors, as employees of the Corporate Services Provider, had an interest in these
fees in their capacity as directors. The estimated aggregate value of the provision of qualifying services of
directors of the Company in accordance with Section 305A(1)(a) of the Companies Act amounted to USD 6,246
(31 March 2022: USD 6,975). This amount is disclosed solely to comply with the requirements of the Act and
represents the best estimate of the value of the qualifying services to the Company. Directors remuneration
during the financial year amounted to USD Nil (31 March 2022: Nil). There is no director remuneration payable
as at 31 March 2023 (31 March 2022: Nil).
During the financial year, the arranger provided $3,268 to the Company. As at 31 March 2023, the total
amount owed to the Company by the Arranger is $13,072.
The total fees paid to the Arranger amounted to USD 5,239,044 (31 March 2022: USD 5,157,099) during the
financial year. From the fees provided to the Arranger, the Arranger has arranged for their employee, Mehdi
Balafrej to provide services as a director of the Company. Mehdi Balafrej is a Global Head of Product and
Capital Markets of Amundi ETF, Indexing and Smart Beta, a subsidiary of the Advisor. Mehdi Balafrej was not
remunerated for his directorship role in the Company.
AMUNDI PHYSICAL METALS PLC
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
46
16. Legal Ownership of the Company
The principal shareholders of the Company are Cafico Trust Company Limited, which holds 25,000 shares in
trust. The shares are held under the terms of the declarations of trust dated 6 December 2018 under which
the relevant share trustee holds the issued shares of the Company on trust for charitable purposes. The profit
of the Company is retained until the Company winds up its operation whereby any excess profit will be
distributed to its shareholders.
The Board of Directors are responsible for the day-to-day management of the Company. The Board is
composed of three directors, two of whom are employees of the corporate services provider and the other
an employee of a subsidiary of the Advisor. As the Company is an orphan structure, there is no ultimate
controlling party.
17. Charges
The ETC Securities issued by the Company are secured in favour of the Trustee for the benefit of the ETC
Security holders by security over the portfolio of precious metals held by the Company and other assets not
attributable to the equity holders.
18. Subsequent events
There were no significant events after the balance sheet date affecting the Company which would require
adjustment to or disclosure in the financial statements.
19. Approval of financial statements
The financial statements were approved and authorised for issue by the Board of Directors on 7 July 2023.