Global Royalties ETF

ROYL

Invest in a portfolio of global royalty companies

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Overview

Fund Objective

ROYL aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of global companies that earn a substantial portion of their revenue from royalty income, royalty-related income and intellectual property (IP) income.

About royalties

A royalty is an agreed payment or stream of payments made by a party to the owner of an asset for the right to ongoing use of the asset, such as natural resources (for example, oil and gas) or intellectual property (for example, copyrighted material). Royalties include mining royalties, in which mining companies generally sell royalty interests in future production or revenues in return for an up-front or ongoing cash payment. Royalties also include IP and tangible royalties, in which the owner of IP rights (in industries including music, biotech and IT) or physical assets, licenses those rights or assets in return for royalty payments.

ROYL offers exposure to a portfolio of royalty companies that may themselves hold a portfolio that benefits from diversified long-term royalty streams, from sources including tangible royalties, IP royalties, and royalty finance and royalty streaming.

Benefits of ROYL

  • Unique investment opportunity

    Global royalties are a unique and attractive investment opportunity. Royalty companies have generally displayed an attractive risk-return profile. They maintain exposure to potential revenue growth of a business but have limited exposure to the operational risks of the companies their royalty payments are generated from.

  • Opportunity to benefit from inflationary environments

    Royalty payments are typically revenue-based. As a result, royalty businesses have the potential to benefit from inflationary environments as they are neither capital intensive nor exposed to input costs from production, while at the same time they are able to participate in the revenue growth of a business.

  • Attractive fundamental characteristics

    Royalty companies generally display attractive fundamental characteristics such as strong and recurring cashflow, high gross margins, strong debt servicing, and high return on capital.

There are risks associated with an investment in ROYL, including market risk, international investment risk, sector risk, royalties related risks and concentration risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available on this website.

How to Invest

  • You can buy or sell units just like any share on the ASX.
  • Fund requires no minimum investment.

Key facts

Pricing information

Current price
Last trade*
% Change (prev day)
Bid (delayed)
Offer (delayed)

* Data is delayed by at least 20 minutes.

NAV
NAV/Unit* $9.46

* As at 20 May 2024

Profile

Net assets* ($A) $6,307,424
Units outstanding* (#) 666,691
Management fee and cost** (p.a.) 0.69%
Distribution frequency At least annually
Distribution reinvestment plan (DRP) Full or partial participation available
Registry Link Market Services

* As at 20 May 2024

* As of close of previous day
**Certain additional costs apply. Please refer to PDS.

Trading information

Bloomberg code ROYL AU
IRESS code ROYL.AXW
Trading hours 10:00-16:00 (AEST)
Market makers Susquehanna Pacific

Index information

Index Solactive Global Royalties Index
Index provider Solactive AG
Index ticker N/A
Bloomberg index ticker SOLGROYN Index

Holdings & allocation

Portfolio holdings

Name Weight (%)
WHEATON PRECIOUS METALS CORP 11.1%
FRANCO-NEVADA CORP 10.4%
UNIVERSAL MUSIC GROUP NV 9.9%
GENMAB A/S 9.3%
ARM HOLDINGS PLC 9.1%
TEXAS PACIFIC LAND CORP 8.7%
ROYALTY PHARMA PLC 6.3%
ROYAL GOLD INC 5.4%
HALOZYME THERAPEUTICS INC 3.5%
DOLBY LABORATORIES INC 2.9%

* As at 21 May 2024. Excludes cash

Sector allocation

Gold
37.0%
Oil & Gas Exploration & Production
23.0%
Movies & Entertainment
15.3%
Pharmaceuticals
9.6%
Biotechnology
7.6%
Steel
3.3%
Application Software
2.6%
Life Sciences Tools & Services
0.8%
Diversified Metals & Mining
0.6%
Other
0.2%

* As of 30 April 2024

Country allocation

United States
40.8%
Canada
26.7%
Brazil
12.4%
Netherlands
10.5%
Denmark
7.5%
Australia
1.4%
Other
0.7%

* As of 30 April 2024

Performance

Fund returns after fees (%)

  Fund Index
1 month -0.40% -0.35%
3 months 7.42% 7.57%
6 months 6.88% 7.18%
1 year 2.91% 3.47%
3 year p.a. - 9.83%
5 year p.a. - 9.89%
10 year p.a. - -
Since inception 11.33% 11.90%
Inception date 9-Sep-22 -

* As at 30 April 2024.
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.

Chart

Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.

Distributions

Yield information

Distribution frequency At least annually
12 mth distribution yield* 4.3%

*As at 30 April 2024. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Past performance is not indicative of future performance.

You can elect DRP by logging into Link’s Investor Centre. Once you are logged in, please proceed to the 'Payments and Tax' tab and select ‘Reinvestment Plans'.

Recent distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
2-Jan-24 3-Jan-24 17-Jan-24 $0.044127 -
3-Jul-23 4-Jul-23 18-Jul-23 $0.344879 -
3-Jan-23 4-Jan-23 18-Jan-23 $0.034015 -

1 This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance.

Announcements

ASX announcements: ROYL

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