Answers to the most frequently asked questions about Nordheim Capital and our ETCs

An ETC (Exchange Traded Commodity) is an exchange-traded security that tracks the price performance of a commodity - in Nordheim Capital's case, physical gold and silver. Just like a stock, Nordheim Capital's ETCs are traded on Nasdaq Stockholm every trading day.

It means that each outstanding security in Nordheim Capital's ETCs corresponds to an exact quantity of physical precious metal held with our custodian, J.P. Morgan Chase Bank N.A., London.

Nordheim Guld ETC tracks the price of physical gold, while Nordheim Silver ETC tracks the price of physical silver. The ETCs are structurally identical but provide exposure to two separate precious metals, each with its own characteristics, price movements and global demand.

A gold ETF is an exchange-traded fund that may be physically backed by gold or provide exposure to the gold price in other ways, for example through derivatives or futures.

Nordheim Capital's gold and silver ETCs, on the other hand, are exchange-traded commodity products issued as securities and traded on Nasdaq Stockholm. They are designed to be simple, transparent and always physically backed by gold or silver held with Nordheim Capital's custodian, J.P. Morgan Chase Bank N.A., London.

Nordheim Capital's ETCs track the price performance of the respective precious metal.

Nordheim Capital publishes the net asset value (NAV) of all its ETCs daily, based on the official LBMA price combined with the current USD/SEK exchange rate. NAV is the valuation point on which the creation/redemption mechanism is based.

NAV is calculated daily, starting from the market value of the physical precious metal held securely with the independent custodian, J.P. Morgan Chase Bank N.A., London. The management fee is then deducted. The remaining net value is divided by the number of ETCs outstanding to arrive at the NAV per ETC, which is published after each trading day.

LBMA (London Bullion Market Association) is the leading international trade association for the precious metals market. The Good Delivery standard is a globally recognised quality standard that sets strict requirements for purity, weight and stamping. Gold and silver that meet the Good Delivery standard are accepted by central banks and institutional market participants worldwide.

Nordheim Capital's ETCs are traded on Nasdaq Stockholm, a regulated marketplace. You trade our products just as you would trade shares through your online broker or bank. Search for the product name or ISIN on your trading platform and place an order during Nasdaq Stockholm's trading hours.

Read more about the products:

• Nordheim Guld ETC
• Nordheim Silver ETC

Yes. Nordheim Capital's ETCs are listed on Nasdaq Stockholm and qualify as exchange-traded securities, which means they can be held in an investment savings account (ISK), a capital insurance account (KF) and a traditional brokerage account. The products are available through Avanza and Nordnet, among others.

You can buy or sell individual securities just as with shares. The only minimum requirement may be your online broker's or bank's minimum order size, which can vary depending on the platform.

Nordheim Capital's ETCs use a creation/redemption mechanism to keep the market price as close as possible to the net asset value (NAV). Authorised Participants (in Nordheim Capital's case, Virtu Financial Ireland Limited) create new ETCs by delivering the consideration, in accordance with the Terms and Conditions of Nordheim Capital's ETCs, to the account provided with the custodian, J.P. Morgan Chase Bank N.A., London.

On redemption, Virtu Financial Ireland Limited transfers the ETCs for cancellation and receives the consideration back to the extent and on the terms set out in the Final Terms. This mechanism means that arbitrage incentives keep the ETC's market price close to the actual value of the underlying precious metal.

Nordheim Capital's ETCs are traded during Nasdaq Stockholm's regular trading hours, Monday-Friday 09:00-17:25 CET (excluding Swedish and international holidays). Prices are set continuously throughout the trading day, just as with traditional share trading.

All underlying precious metals are held in custody with J.P. Morgan Chase Bank N.A., London - one of the world's leading and most respected Tier 1 custodians. J.P. Morgan is LBMA-accredited and meets strict international requirements for the secure handling and storage of precious metals.

Yes. The precious metals are registered in a separate, dedicated account with Nordheim Capital's custodian, J.P. Morgan Chase Bank N.A., London, and are clearly separated from our own assets and from J.P. Morgan's own positions. This means that the precious metals belong to the ETCs' asset pool, not to Nordheim Capital.

No, not at present. Physical delivery of precious metals only takes place through the creation/redemption mechanism (read more under "Structure & Security") and is in practice reserved for Authorised Participants (in Nordheim Capital's case, Virtu Financial Ireland Limited), who handle the volumes of global institutions.

If Nordheim Capital were to go bankrupt, there is a physical precious metal asset linked to each ETC. The assets are intended to be realised for the benefit of investors and serve as collateral for the ETCs.

No. Nordheim Capital's ETCs do not provide capital protection. The value of the products may rise or fall depending on the price performance of the underlying precious metal and on currency movements. You could lose your entire invested amount, which would require the price of gold and/or silver to fall to zero.

• No capital protection: The value of the ETCs is affected by the performance of the underlying precious metal, exchange rate movements, fees and market pricing. Investors may lose all or part of their invested capital.
• Currency risk: The underlying precious metals are priced in USD, which means that changes in the USD/SEK exchange rate may affect the value of the ETCs in Swedish kronor.
• Liquidity and market risk: Trading may take place at wide spreads or at prices that deviate from the ETCs' underlying value, particularly in stressed market conditions or when liquidity is limited.
• Custody and counterparty risk: The underlying precious metal assets are held with external custodians. Operational disruptions, insolvency or other problems at relevant parties may affect investors' ability to receive payment.
• Operational and regulatory risk: The products depend on functioning systems, external service providers and a regulatory framework that may change over time.

Read the full risk information in the Prospectus.

The tax treatment depends on the type of account you use. Holdings in an investment savings account (ISK) are generally taxed using a standardised flat-rate method. Holdings in a capital insurance account (KF) are generally taxed in a similar way. For holdings in a traditional brokerage account, realised gains are generally taxed as capital income (30%), and realised losses are generally deductible.

The above applies to investors who are tax resident in Sweden. If you are tax resident in another country, the rules of that country apply.

The management fee (Total Expense Ratio, TER) is the annual cost covering administration, custody, listing fees and the ongoing operating costs of each product. It is calculated daily and gradually reduces the precious metal holding per security, which means that the product's NAV is adjusted for the fee on an ongoing basis. The fee level is stated in the product's Final Terms and Key Information Document (KID).

• The Key Information Documents for Nordheim Guld ETC and Nordheim Silver ETC are available here.

Nordheim Capital AB (publ) is a Swedish public limited company and issuer of ETCs, with its registered office in Stockholm. The company's base prospectus has been approved by Finansinspektionen, the Swedish Financial Supervisory Authority, as the competent authority under the EU Prospectus Regulation. Nordheim Capital is also subject to applicable rules on disclosure, market abuse and investor information, including the relevant PRIIPs KID requirements.

The prospectus, Final Terms and Key Information Documents (KID) for all of Nordheim Capital's products are available under Investor Relations. We recommend that you read these documents carefully before making any investment decision.