Notes: Capitalized terms not defined otherwise in this section have the same meanings as defined in the prospectus of the Japan Physical Gold Exchange Traded Fund (hereinafter "Prospectus").
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Name |
Japan Physical Gold Exchange Traded Fund (Type Backed by Domestically Stored Physical Metal) (Product name:"Fruit of Gold") |
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Ticker Code |
1540 |
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Listed Exchange |
Tokyo Stock Exchange |
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Trading Unit at the Exchange |
1 |
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Inception Date |
June 30, 2010 |
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Listing Date |
July 2, 2010 |
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Trust Period |
No specific period |
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Trust Fee |
0.440% annually (as of October 1, 2019) (no larger than 0.539%) See below for details. |
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Accounting Date |
January 20 of each year (semi-annual calculations to be made on July 20 of each year) |
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Trust Assets |
Gold bullion (with a purity of 99.99% or more) and money |
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Distribution of Profits |
In principle, there will be no distribution of profits or other moneys. |
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Index Price |
The index price is a theoretical price calculated by the Trustee to determine the present value of gold bullion, which represents the gold futures price (per gram) on the Tokyo Commodity Exchange discounted to its present value at the gold forward rate. |
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The Trust Assets are mainly Gold Bullion and the Trust was created on the initial creation date (June 30, 2010) by the Settlor(Mitsubishi Corporation), and additional trust may also be created. Provided, however, that the Trust assets may also temporarily hold money for receipt of Consumption Taxes equivalent and payment of trust fee and trust expenses (hereinafter "Trust Fees and Expenses"), and in such case, the Trust Assets will include money. Gold Bullion which are Trust Assets does not have any additional value (including, but not limited to, its value as jewelry) other than its substantial value as mineral commodity.
By holding Gold Bullion as a major part of its Trust Assets, it is contemplated that the Net Assets per Unit (as Disclosed at the Exchanges) of the Trust will be linked to the Index Price as a result of its structure.
Most of the Trust Assets of the Trust will be in gold bullion and therefore will be affected by changes in gold bullion prices, and Net Assets per Unit (as Disclosed at the Exchanges) will decline when gold bullion prices decline and may incur losses.
Therefore, the investment principal of investors is not guaranteed, and you may incur losses and lose investment principal due to decline in Net Assets per Unit (as Disclosed at the Exchanges).
Causes of fluctuation in Net Assets per Unit (as Disclosed at the Exchanges) include "Risk of Fluctuations in Prices of Gold Bullion ", "Exchange-rate Risk ", "Liquidity Risk of Gold Bullion" and others. For details concerning risks including the aforementioned risks, please see Part 2 "Trust Assets Information", I "Status of Trust Assets", 5 "Investment Risks" in the Prospectus.
For details, please see Part 2 "Trust Assets Information", I "Status of Trust Assets", 3 "Structure of Trust", (iv) "Other", (b) "Fees and Charges" in the Prospectus.
- Trust Fee
The trust fee shall be the aggregate of the following amounts:
- The monthly total of the Total net assets (as disclosed at the exchange) on each day of the
relevant month multiplied daily by a rate not higher than 0.539% (0.49%, net of tax) (the percentage stood at 0.440% (0.40%, net of tax) as of October 1, 2019), per annum as specified by the Trustee (prorated daily based on a 365 day-year (or 366 day-year in case of leap years)) (fractions less than JPY 1 resulting from such daily multiplications to be disregarded); provided, however, that the initial trust fee will be calculated for the period starting from the day following the date when the initial Beneficial Interests are entered or recorded in the Book-entry transfer account register up to the immediately succeeding last day of the month (in which such date falls), and the last trust fee will be calculated for the period starting from the first day of the month in which the trust termination date falls up to the trust termination date; and - The balance after deducting the amount equivalent to the trust expenses incurred in each Trust Asset Calculation Period from the amount equivalent to the interest attributable to the Trust Assets (if any) for the relevant Calculation Period (including consumption tax and other charges).
- Other expenses
(1) Expenses for listing of the Trust
- Additional listing fee: 0.00825% (0.0075%, net of tax) of the amount of increase at the time of additional listing (in relation to the Total net assets (as disclosed at the exchange) as of the year end of that year, the amount of increase from the largest of the Total net assets (as disclosed at the exchange) at the time of the initial listing and as of the end of each year from the year of the initial listing to the previous year.
- Yearly listing charge: a maximum of 0.00825% (0.0075%, net of tax) of the Total net assets (as disclosed at the exchange) as of the end of each year, and TD-net user fee of JPY 132,000 (JPY 120,000, net of tax).
(2) Other expenses
- Amount equivalent to the audit fees for the Trust Assets and the consumption tax and other charges on such audit fees;
- Amount equivalent to the taxes on the Trust Assets, expenses for handling of trust business and the consumption tax on such expenses;
- Amount equivalent to interest on borrowings or advances made by the Trustee for the Trust Assets; and
- Amount equivalent to fees for the sale of the Trust Assets and the consumption tax and other charges on such fees.
