PRODUCT KEY FACTS ETFS Physical Gold ETF 22 April 2016

This is an exchange traded fund. This statement provides you with key information about this product. This statement is a part of the offering documents and must be read in conjunction with the Prospectus. You should not invest in this product based on this statement alone.

Quick facts Stock code:

02830

Trading lot size:

2 Units

Fund Manager:

ETF Securities (HK) Limited

Trustee and Registrar:

HSBC Institutional Trust Services (Asia) Limited

Custodian:

HSBC Bank plc #

Ongoing charges over a year :

0.39%

Tracking difference of the last ## calendar year :

-0.3%

Benchmark:

Base currency:

The afternoon session of the twice daily fix of the price of a troy ounce of gold quoted in US Dollars, calculated by ICE Benchmark Administration Limited and published by the London Bullion Market Association (the “LBMA”), or any benchmark as acceptable and approved under the requirements of the Code on Unit Trusts and Mutual Funds (the “Code”) (the “IBA PM Gold Fix”). US Dollars (US$)

Trading currency:

HK Dollars (HK$)

Financial year end of this fund:

31 December

Dividend policy:

No distributions will be made.

Exchange Listing:

SEHK – Main Board

ETF Website:

http://hkenglish.etfsecurities.com/investor/hk/engb/document/etfs_document.asp

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The ongoing charges figure is based on expenses for the year ended 31 December 201 5 expressed as a percentage of the Fund’s average NAV for the same period. This figure may vary from year to year. ## This is the actual tracking difference of the last calendar year. Investors should refer to the ETF website for more up -todate information on actual tracking difference.

What is this product? The ETFS Physical Gold ETF (the “Fund”) is a unit trust established under Hong Kong law. The Fund is an exchange traded fund managed by the Manager and listed on The Stock Exchange of Hong Kong Limited (the “SEHK”), on which the Units of the Fund are traded like listed stocks.

Objective and Investment Strategy Objective The Fund’s investment objective is to provide investment results, before fees and expenses, that closely correspond to the performance of the IBA PM Gold Fix.

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ETFS Physical Gold ETF

Investment Strategy In order to achieve the investment objective, the Fund intends to primarily acquire and hold physical gold Bullion, being gold in the form of uniquely identifiable bars of minimum fineness of 99.5% gold from an approved refiner on the LBMA’s Good Delivery List of acceptable refiners for gold. Subject to its investment and borrowing restrictions, the Fund may also hold interests in other gold ETFs acceptable to the Manager. Such gold ETFs’ investment objective shall be to reflect the performance of the price of gold Bullion and, initially, they will include those ETFs managed by the ETF Securities group in the US and listed on the New York Stock Exchange. Interests in gold ETFs will not usually comprise more than 10% of the Fund’s Net Asset Value at any time. Such gold ETFs will all be physically backed by gold Bullion and will not include short or leveraged ETFs. Except as stated above, the Fund will not invest in any other types of investments – including, but not limited to derivative futures contracts, options, swaps, warrants and other financial derivative instruments, local currency and foreign currency exchange contracts, structured products or instruments and other securities. The Fund will not lend its Bullion nor engage in any kind of stock lending activities or repurchase transactions.

The Benchmark The Fund’s benchmark is the IBA PM Gold Fix. The IBA PM Gold Fix is the afternoon session of the twice daily fix (which takes place at 3:00pm London time) of the price of a troy ounce of gold quoted in US Dollars, calculated by ICE Benchmark Administration Limited (“IBA”) and published by the LBMA on its website http://www.lbma.org.uk and IBA’s website on www.theice.com/iba. It is expected to be widely used internationally as the benchmark for daily gold prices.

What are the key risks? Investment involves risks. Please refer to the “Risk Factors” section in the Prospectus for details. Investment Risk •

The Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore your investment in the Fund may suffer losses.

Physical Gold/Concentration Risk •

Prices of physical gold are highly volatile and may fluctuate widely and may be affected by numerous events or factors related to its production and sale and other financial market factors.

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As the Fund is concentrated in physical gold, it is more susceptible to the effects of such price volatility than more diversified funds.

Custody and Insurance Related Risk • Only amounts of Bullion that represent Creation Applications and Redemption Applications, amounts not sufficient for a Good Delivery bar (which may weigh between 350 and 430 Ounces), and amounts that have been deallocated to pay for the Fund’s management fees or extraordinary expenses (if any) will be held in unallocated form. The amount of Bullion held overnight (London time) in unallocated form will not typically exceed 430 Ounces, being the maximum size of a Good Delivery bar. As the Custodian is required to allocate Bullion on a continuous basis once it reaches a whole bar, the rest of the Fund’s Bullion will be held in fully allocated form as uniquely identifiable Good Delivery bars physically segregated from other metal held by the Custodian (or Sub-Custodian). Access to the Bullion could be restricted by natural events, such as flooding, or human actions, such as terrorist attack. •

The Fund has no proprietary rights to any specific Bullion held on an unallocated basis for the Fund and, on the Custodian’s insolvency, the Fund would rank as an unsecured creditor in relation to such unallocated Bullion. If the Custodian (or Sub-Custodian) fails to allocate or segregate the Fund’s Bullion properly or in a timely manner and were to become insolvent, the Fund could suffer a significant loss.

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ETFS Physical Gold ETF •

Neither the Manager nor the Trustee will maintain insurance for the Fund’s Bullion. The Custodian shall make such insurance arrangements in connection with its custodial obligations with respect to Bullion as it thinks fit but has no obligation to insure against loss, theft or damage. There is a risk that some or all of the Bullion could be lost, stolen or damaged and the Fund would not be able to satisfy its obligations in respect of the Units.

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Bullion may temporarily be held, on a fully allocated basis, by one or more Sub-Custodians appointed by the Custodian until it is transported to the Custodian’s London vault, which will be done as soon as reasonably practicable. The Custodian is generally not liable for the acts or omissions of its SubCustodians unless it selected them fraudulently, negligently or in bad faith, or failed to satisfy itself on an ongoing basis that they remained suitably qualified and competent. As the Fund has no direct relationship with the Sub-Custodian, if the Fund’s gold is lost or damaged while in the custody of a Sub-Custodian, the Fund may not be able to recover damages from the Custodian or SubCustodian.

Official Sector Risk •

The official sector, i.e. Central banks, other governmental agencies and multi-lateral institutions, holds a significant amount of gold, most of which is held in vaults and is not bought, sold, leased or swapped or otherwise mobilised in the open market. If the official sector were to need to sell their gold all at once or in an uncoordinated manner, the sudden increase in supply of gold to the market might outweigh demand, which could adversely affect the price of Units in the ETFS Physical Gold ETF.

Fixing Processes for Gold Risk •

The IBA PM Gold Fix is regulated by the Financial Conduct Authority. Neither the Manager nor the Trustee has any control or supervision over the fixing or the price so fixed.

Future Changes to the IBA PM Gold Fix •

As the IBA PM Gold Fix is a new benchmark, it is expected that it will develop further over time for example to include additional auction participants or by way of a change to the tolerance within which orders will be matched to set the IBA PM Gold Fix. Any such future changes, to the extent they have a material impact on the IBA PM Gold Fix could adversely impact the Net Asset Value of the Fund.

Other Risks Relating to the IBA PM Gold Fix •

Lawsuits have been filed against the member banks that established the previous London gold fix (the “London Gold Fix”) for alleged manipulative conduct in connection with their role in determining the London Gold Fix. There is still an ongoing investigation into the manipulation of the London Gold Fix, and it is possible that there may be additional regulatory actions brought against other members of the London Gold Market Fixing Limited. If the ongoing investigation identifies that there was historic manipulation of the London Gold Fix, this may have impacted the historic price of gold and ultimately the market price of the Units. If there is a perception that the price of gold is susceptible to intentional disruption, or if the IBA PM Gold Fix is not received with confidence by the markets, the behavior of investors and traders in gold may reflect the lack of confidence and it may have an effect on the price of gold and, consequently, the value of the Units.

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The calculation of the IBA PM Gold Fix is not an exact process. Rather it is based upon a procedure of matching orders from participants in the auction process and their customers to sell the gold with orders from participants in the auction process and their customers to buy gold at particular prices. The IBA PM Gold Fix does not therefore purport to represent every single buyer or seller of gold in the market, nor does it purport to set a definitive price for gold at which all orders for sale or purchase will take place on that particular day or time.

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If the IBA PM Gold Fix is discontinued, the Manager will, in consultation with the Trustee, seek the SFC’s prior approval to replace the IBA PM Gold Fix with another benchmark that has similar objectives to the IBA PM Gold Fix. If the Manager and the Trustee do not agree within a reasonable period on a suitable replacement benchmark acceptable to the SFC, the Manager may, in its discretion, terminate the Fund.

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ETFS Physical Gold ETF •

While the auction process used to establish the IBA PM Gold Fix is expected to be a transparent and auditable process in accordance with applicable benchmark regulations, there is no guarantee that the participants in the auction may not be biased or influenced for their own purposes when participating in the auction or the auction may not be manipulated and therefore the price fixed may not reflect the fair value. Further, the operation of the auction process which determines the IBA PM Gold Fix is dependent on the continued operation of the LBMA and IBA and their applicable systems. Neither the Manager nor the Trustee has any control or supervision over the auction process of the IBA PM Gold Fix or the operation and systems of LBMA and IBA.

Passive Investment Management Risk •

As the Fund is not actively managed, the Manager has a lack of discretion to adapt to market changes. The Manager will not attempt to select other commodities or precious metals to take defensive positions in declining markets. As a result, falls in the IBA PM Gold Fix will result in falls in the value of the Fund.

Currency Risk •

As the Fund’s base currency and the IBA PM Gold Fix is in US Dollars, the value of Units in the Fund that are traded on the SEHK in HK Dollars will be affected by changes in the exchange rate between these two currencies. Units created and redeemed directly by the Fund through the Participating Dealers should not be subject to this risk, however.

Tracking Error Risk •

At any time, there is no assurance that the price at which Units of the Fund trade on the SEHK will exactly reflect the price of the gold represented by those Units.

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Factors such as the fees and expenses of the Fund, rounding of Bullion prices, the valuation of any interests in gold ETFs held by the Fund, and changes to regulatory policies may affect the Manager’s ability to achieve close correlation with the IBA PM Gold Fix.

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If the actual tracking error were to be significantly higher than anticipated, for example, because of extreme market fluctuations or extraordinary expenses, the Fund’s performance may be adversely affected.

Absence of Active Market Risk •

Although the Units are to be listed on the SEHK and the Manager aims to ensure that there will always be at least one market maker for the Fund, there can be no assurance that an active trading market in respect of the Units will always exist.

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If a Unitholder needs to sell its Units at a time when there is no active market for them, the price it will receive for its Units, if it is able to sell them, is likely to be lower than the price it would have received if an active market were to exist.

Trading Risk •

Generally, retail investors can only buy or sell Units on the SEHK through an intermediary or stockbroker. Investors pay certain charges (e.g. trading fees and brokerage fees) to buy and sell Units on the SEHK.

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The trading price of the Units on the SEHK is driven by market factors such as demand and supply of the Units and may be at a premium or discount to the Net Asset Value of the Units.

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Investors may therefore pay more than the Net Asset Value per Unit when buying a Unit on the SEHK, and may receive less than the Net Asset Value per Unit when selling a Unit on the SEHK.

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ETFS Physical Gold ETF Termination Risk •

The Manager or the Trustee may terminate the Fund early in various circumstances. If any of such circumstances were to happen, termination could occur at a time which was disadvantageous to Unitholders and when Bullion prices were lower than when Unitholders purchased their Units. In such a case, the resulting proceeds for distribution to Unitholders may be less than an investor paid for its Units and the investor would sustain a loss.

How has the fund performed?

* Investors should note that the benchmark of the Fund has been changed to IBA PM Gold Fix with effect from 20 March 2015.  Past performance information is not indicative of future performance. Investors may not get back the full amount invested.  The computation basis of the performance is based on the calendar year end, NAV-to-NAV.  These figures show by how much the Fund increased or decreased in value during the calendar year shown. Performance data has been calculated in USD including ongoing charges and excluding your trading costs on SEHK.  Where no past performance is shown there was insufficient data available in that year to provide performance.  Fund launch date: 28 November 2012.

Is there any guarantee? The Fund does not provide any guarantees. You may not get back the amount of money you invest.

What are the fees and charges? Please refer to Schedule 1 of the Prospectus for details of other fees and expenses applicable to the creation or redemption, or dealing in the Units of the Fund.

Charges incurred when trading the Fund on SEHK Fee

What you pay

Brokerage fee

At each broker’s discretion

Transaction Ievy

0.0027% of the trading price of the Units 1

Trading fee

0.005% of the trading price of the Units 2

Stamp duty

Nil

1. Transaction levy of 0.0027 per cent (0.0027%) of the price of the Units, payable by the buyer and the seller. 2. Trading fee of 0.005 per cent (0.005%) of the price of the Units, payable by the buyer and the seller.

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ETFS Physical Gold ETF

Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the Net Asset Value which may affect the trading price. Annual rate (as a % of the Fund’s NAV)

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Management fee

0.39%* per annum (inclusive of all ordinary trustee fees, custodian fees and other ordinary expenses of the Fund).

Extraordinary expenses

Please refer to Schedule 1 of the Prospectus for details of the extraordinary expenses (if any) which may be payable by the Fund.

The Manager may also, on giving not less than one month’s notice to Unitholders, increase the rate of management fee payable in respect of any class of Units up to a maximum of 1%.

Additional Information You can find the following information of the Fund on the Manager’s website http://hkenglish.etfsecurities.com/investor/hk/en-gb/document/etfs_document.asp: •

The last published prospectus and its product key facts statement;

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Latest annual and semi-annual financial reports of the Fund in English;

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Public announcements and notices made by the Fund, including information in relation to the IBA PM Gold Fix, notices of the suspension of calculation of Net Asset Value, changes in fees and charges, the suspension and resumption of trading of Units, and notices relating to material alterations or additions to the offering documents or the constitutive documents of the Fund;

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List of Participating Dealers and Market Makers;

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Holdings of the Fund (updated on a daily basis);

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The near real-time Net Asset Value per Unit (calculated by a third party data vendor, using (i) for Bullion: spot prices quoted by Precious Metal market makers from around the world throughout the day rather than the IBA PM Gold Fix and (ii) for interests in other gold ETFs held by the Fund: the real-time net asset value per unit, calculated by reference to the spot prices for Bullion described in (i)); and

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The daily closing Net Asset Value of the Fund and per Unit (based on the IBA PM Gold Fix and the published net asset value per unit of any interests in other gold ETFs).

Important •

If you are in doubt, you should seek professional advice.

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The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness.

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