Structure & Security
How Your Investment Is
Structured and Secured
Nordheim Capital AB (publ) is a Swedish public limited company and issuer of ETCs, headquartered in Stockholm. The Company's base prospectus has been approved by the Swedish Financial Supervisory Authority (Finansinspektionen) as the competent authority under the EU Prospectus Regulation.
Physical 1:1 Backing
What does it mean?
Each ETC issued by Nordheim Capital represents a specific amount of physical precious metal on a daily basis.
Unlike synthetic products (which use derivatives) or products with fractional backing, Nordheim Capital's ETCs do not rely on either of these structures.
The ETCs are secured by underlying physical precious metal held by the custodian, J.P. Morgan Chase Bank N.A., London. This collateral is intended to be realised for the benefit of investors in accordance with the terms and conditions of the respective product.
Photo: Bank of England
Creation & Redemption
The Creation/Redemption Mechanism
Nordheim Capital's ETCs utilise a creation/redemption mechanism designed to keep the market price as close as possible to the daily Net Asset Value (NAV).
Creation
Authorised Participants (in Nordheim Capital's case, Virtu Financial Ireland Limited) create new ETCs by delivering the required consideration to the custody account maintained with the Custodian, J.P. Morgan Chase Bank N.A., London, in accordance with the terms and conditions of Nordheim Capital's ETCs.
Redemption
Upon redemption, Virtu Financial Ireland Limited transfers the ETCs for cancellation and receives the consideration back to the extent and on the terms specified in the Final Terms.
This mechanism creates arbitrage incentives that help keep the ETCs market price closely aligned with the value of the underlying precious metal.
Transparency & Reporting
Daily Visibility into Your Holdings
Nordheim Capital publishes the Net Asset Value (NAV) of all ETCs on a daily basis, calculated using the official LBMA price in combination with the prevailing USD/SEK exchange rate. NAV serves as the reference valuation used in the creation/redemption mechanism.
In addition to daily NAV reporting, Nordheim Capital publishes regular reports on the underlying precious metal holdings, including certificates issued by the custodian, J.P. Morgan Chase Bank N.A., London.
Nordheim Capital is also subject to applicable requirements relating to disclosure, market abuse regulation and investor information, including relevant obligations under the PRIIP’s KID framework.
The prospectus, Final Terms and Key Information Documents (KIDs) are always available to investors and can be accessed through the Investor Relations section.
How NAV is Calculated and Used
NAV is calculated daily by first determining the market value of the physical precious metals held in custody by the independent custodian, J.P. Morgan Chase Bank N.A., London. The management fee is then deducted.
The resulting net asset value is divided by the number of ETCs outstanding to determine the NAV per ETC, which is published on our website after each trading day.
LBMA
What does it mean?
LBMA stands for London Bullion Market Association and is the leading international trade association for the global precious metals market. It describes itself as the independent authority for precious metals and works to promote integrity, transparency and trust across the industry through the development of market standards and best practices.
In practice, LBMA provides the framework that enables physical precious metals to be verified, traded, stored and managed according to institutional standards. It supports market participants by maintaining quality standards for the loco London market and by overseeing accreditation programmes for precious metals refiners.
LBMA represents the global market for gold and silver bullion, with trading centred in London and supported by an international network of members. The association also acts as a key point of contact for regulators, investors and market participants, while publishing guidance and industry standards that contribute to a well-functioning precious metals market.
Good Delivery
The Quality Standard for Gold & Silver
When a physical bullion bar carries Good Delivery status, it means that it meets the LBMA's requirements for acceptance in the professional precious metals market.
Good Delivery is based on standardised specifications and uniform rules (see the key requirements to the right) that enable precious metals to be verified, traded, delivered and handled according to institutional standards.
The Good Delivery system forms a core part of the infrastructure underpinning the physical precious metals market and provides investors with confidence in the quality, authenticity and market acceptability of the underlying metal.
LBMA Prices
International Benchmark Prices
LBMA is responsible for the daily price auctions in London that form the basis for the global benchmark prices for gold and silver.
The benchmark process is independently administered. While LBMA owns the benchmarks, external benchmark administrators oversee their operation, including methodology, auction platforms, governance and market oversight.
For both gold and silver, the benchmarks are administered by ICE Benchmark Administration (IBA) in accordance with LBMA standards. Nordheim Capital's ETCs also use these benchmarks as the basis for valuation.
These benchmark prices are widely used throughout the market for valuation and pricing purposes and are referenced in physical transactions as well as financial products. This helps create a common pricing standard and makes it easier to compare precious metals prices over time.
Where Can You Find the Prices - and when?
LBMA publishes benchmark prices on its website with a delay (typically after midnight London time on the same day), while real-time prices are available through market data providers.
As a result, the prices published on the LBMA website should primarily be viewed as official benchmark prices rather than a real-time source for trading.
Our Products
Two Products - Always Physically Backed
Risks
Read More in the Prospectus
Read the Full Risk Disclosure in the Prospectus ➔
Investments in ETCs involves risk. The products do not provide capital protection, and their value may rise or fall, meaning that investors may lose all or part of their invested capital. Returns are affected by, among other factors, the performance of the underlying precious metal and, where applicable, currency fluctuations and fees. ETCs are exchange-traded securities, and their characteristics, terms and risk factors are described in the Prospectus and Key Information Document (KID). Investors should carefully review these documents before investing and ensure they understand the product's structure, costs and associated risks. Past performance is not a reliable indicator of future results. Where appropriate, investors should seek independent financial, legal or tax advice before making an investment decision.
How to invest
Our products can be held through ISK, Capital Insurance Accounts, and traditional brokerage accounts with a range of brokers. Additional platforms will be added over time.
