Global Royalties ETF
- International shares
Invest in a portfolio of global royalty companies
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.
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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.
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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* | $8.59 |
* As at 6 December 2023
Profile
| Net assets* ($A) | $5,726,610 |
|---|---|
| Units outstanding* (#) | 666,494 |
| 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 6 December 2023
* 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) |
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 | 11.9% |
| ROYALTY PHARMA PLC | 10.4% |
| UNIVERSAL MUSIC GROUP NV | 10.0% |
| GENMAB A/S | 9.0% |
| ROYAL GOLD INC | 8.4% |
| TEXAS PACIFIC LAND CORP | 8.3% |
| FRANCO-NEVADA CORP | 8.1% |
| WARNER MUSIC GROUP CORP | 4.8% |
| PRAIRIESKY ROYALTY LTD | 4.5% |
| INTERDIGITAL INC | 2.9% |
* As at 7 December 2023. Excludes cash
Sector allocation
| Gold | 35.9% |
|---|---|
| Oil & Gas Exploration & Production | 28.2% |
| Movies & Entertainment | 17.3% |
| Pharmaceuticals | 8.4% |
| Steel | 4.6% |
| Application Software | 3.3% |
| Life Sciences Tools & Services | 1.2% |
| Diversified Metals & Mining | 0.8% |
| Tech. Hardware, Storage & Peripherals | 0.3% |
* As of 31 October 2023
Country allocation
| United States | 44.6% |
|---|---|
| Canada | 32.3% |
| Netherlands | 11.2% |
| Brazil | 9.6% |
| Australia | 1.8% |
| Britain | 0.3% |
| Other | 0.3% |
* As of 31 October 2023
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | 0.74% | 0.78% |
| 3 months | -3.88% | -3.76% |
| 6 months | 1.46% | 1.71% |
| 1 year | -6.16% | -5.72% |
| 3 year p.a. | - | 17.74% |
| 5 year p.a. | - | 12.44% |
| 10 year p.a. | - | - |
| Since inception | 10.01% | 10.56% |
| Inception date | 9-Sep-22 | - |
* As at 30 November 2023.
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* | 4.4% |
*As at 31 October 2023. 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.
Recent distributions
| Ex Date | Record Date | Payment Date | Distribution Unit ($) | Annual Distribution Return (%) (1) |
|---|---|---|---|---|
| 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.