DB ETC plc
Directors' report and audited financial statements
For the year ended 31 December 2024
Registered number : 103781
DB ETC plc
Contents
Page (s)
Directors and other information
1
Directors' report
2- 5
Statement of Directors' responsibilities
6
Independent auditor's report
7 - 13
Statement of comprehensive income
14
Statement of financial position
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18 - 37
DB ETC plc
Page 1
Directors and other information
Directors
Marc Harris
Registered Office
4th Floor
St Paul's Gate
22-24 New Street
St Helier
Jersey JE1 4TR
Channel Islands
Company Secretary
Vistra Secretaries Limited
4th Floor
St Paul's Gate
22-24 New Street
St Helier
Jersey JE1 4TR
Channel Islands
Administrator
Vistra Fund Services Limited
4th Floor
St Paul's Gate
22-24 New Street
St Helier
Jersey JE1 4TR
Channel Islands
Determination Agent
Apex Fund Services (Ireland) Limited
2nd Floor
Block 5
Irish Life Centre
Abbey Street Lower
Dublin D01 P767
Ireland
Lead Authorised Participant, Arranger,
Deutsche Bank AG, London Branch
Issuing and Paying Agent, Programme
21 Moorfields
Counterparty and Metal Agent
London EC2Y 9DB
United Kingdom
JPMorgan Chase Bank, N.A. (“
JPMorgan
”), London Branch
25 Bank Street
Canary Wharf
London E14 5JP
United Kingdom
Note Trustee
Deutsche Trustee Company Limited
21 Moorfields
London EC2Y 9DB
United Kingdom
Independent Auditor
KPMG Channel Islands Limited
Chartered Accountants and Recognised Auditor
37 Esplanade
St Helier
Jersey JE4 8WQ
Channel Islands
Visdirect Services Limited
Viscom Services Limited
Secured and Subscription Account
Custodian
(Previously the address was Winchester House, 1 Great Winchester Street, London, EC2N 2DB,
United Kingdom up until 1 February 2024)
(Previously the address was Winchester House, 1 Great Winchester Street, London, EC2N 2DB,
United Kingdom up until 1 February 2024)
DB ETC plc
Page 2
Directors' report
Principal activities and business review
Key performance indicators
x
x
x
x
Maturity date
CCY
Nominal
Series 1 Xtrackers Physical Gold ETC 15-Jun-60 USD
149,933
Series 2 Xtrackers Physical Gold EUR Hedged ETC 15-Jun-60
EUR
3,083,239
Series 4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60
EUR
956,036
Series 6 Xtrackers Physical Platinum EUR Hedged ETC 14-Jul-60
EUR
924,049
Series 9 Xtrackers Physical Gold ETC (EUR) 27-Aug-60 USD
1,619,011
Series 10 Xtrackers Physical Silver ETC (EUR) 27-Aug-60 USD
328,887
Series 13 Xtrackers Physical Gold GBP Hedged ETC 01-Apr-61
GBP
491,365
The directors (the "Directors") present the Directors' report and audited financial statements of DB ETC plc (the “Company”) for the year ended
31 December 2024.
The Company was incorporated on 06 August 2009 as a public limited liability company in Jersey under the Companies (Jersey) Law 1991 with
registration number 103781.
The principal activity of the Company, under the Secured ETC Precious Metal Securities Programme (the “Programme”), is to issue from time
to time series (each a "Series") of secured precious metal linked securities (the “ETC Securities”), where recourse in respect of each Series is
limited to the proceeds of enforcement of the security over each respective Series' assets.
The Directors confirm that the key performance indicators as disclosed below are those that are used to assess the performance of the Company.
the Company made a profit of EUR nil (2023: EUR nil);
the net fair value gain on Precious metals held by the Company at fair value and Precious metals due from Deutsche Bank AG, London
Branch (the "Programme Counterparty") at fair value amounted to EUR 965,140,189 (2023: EUR 276,457,897);
With respect to each Series of ETC Securities, the Company’s main assets are its holdings of underlying Precious metals (the "Precious metals
")
and its interests under the related balancing agreement (the ''Balancing Agreement''). The obligations of the Company under the ETC Securities
of a Series will be secured in favour of the Trustee by an assignment by way of security of all the Company’s rights, title, interest and benefit
present and future against the secured account custodian (the ''Secured Account Custodian''), the subscription account custodian (the
''Subscription Account Custodian'') and any sub-custodian (the ''Sub-Custodian'') relating to the underlying metal in respect of this Series of
ETC Securities.
The net proceeds from the issue of a Series of ETC Securities are used to purchase an amount of metal which, in accordance with the custody
agreement (the ''Custody Agreement'') for secured accounts will, to the extent possible, be allocated to physical metal bars or other metal shapes
and be held in the secured allocated account. Any remaining metal is held in the secured unallocated account. Such underlying metal is used to
meet the Company’s obligations under the relevant Series of ETC Securities and the relevant Balancing Agreement.
The ETC Securities issued are listed on various exchanges including London Stock Exchange, Swiss Stock Exchange, XETRA, Borsa Italiana
and Euronext Dublin.
The Company is a Special Purpose Vehicle (the ''SPV'') whose sole business is the issue of asset-backed securities. The Company has established
a programme for the issue of ETC Securities whose return is linked to the performance of a specified Precious metal: either gold, silver, platinum,
or rhodium. Each series of ETC Securities will be separate (or ‘ring-fenced’) from each other series of ETC Securities. The best benchmark is the
price of the relevant metal in which the proceeds of the ETC Securities are invested in. For all Series, the performance closely follows the
movement in the metal linked to the Series.
During the year ended:
the net fair value loss on financial liabilities designated at fair value through profit or loss amounted to EUR 965,140,189 (2023: EUR
276,457,897); and
there were additional subscriptions in the following existing Series of ETC Securities, with Series currency (“CCY”):
DB ETC plc
Page 3
Directors' report (continued)
Key performance indicators (continued)
During the year ended (continued):
x
Series Description
Maturity date CCY Nominal
Series 1 Xtrackers Physical Gold ETC 15-Jun-60
USD
757,830
Series 2 Xtrackers Physical Gold EUR hedged ETC 15-Jun-60
EUR
5,176,097
Series 4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60
EUR
1,048,607
Series 6 Xtrackers Physical Platinum EUR Hedged ETC 14-Jul-60
EUR
1,279,520
Series 9 Xtrackers Physical Gold ETC (EUR) 27-Aug-60 USD
5,806,868
Series 10 Xtrackers Physical Silver ETC (EUR)
27-Aug-60
USD
356,041
Series 13 Xtrackers Physical Gold GBP Hedged ETC 01-Apr-61
GBP
1,205,520
x
the prices of Precious metals movement are as follows:
Series CCY
Price per ounce as
at 31 Dec 2024
Price per ounce as
at 31 Dec 2023
Movement (%)
Series 1 USD 2,610.85 2,062.40
26.59
Series 2 EUR 2,508.26 1,865.67
34.44
Series 4 EUR 27.77 21.48
29.29
Series 6 EUR 877.08 910.57
(3.68)
Series 9 USD 2,610.85 2,062.40
26.59
Series 10 USD 27.77 21.48
29.29
Series 11 USD 4,495.00 4,330.00
3.81
Series 12 EUR 4,320.04 3,912.18
10.43
Series 13 GBP 2,082.52 1,622.85
28.32
31-Dec-24 31-Dec-23
Movement (%)
in 31-Dec-24
USD - EUR 0.9659 0.9059
6.62%
GBP - EUR 1.2085 1.1535
4.77%
x
x
x
x
the net assets were EUR 30,002 (2023: EUR 30,002).
x
the Company had the following ETC Securities in issue:
Series Description
Maturity date
CCY
Metals held
1 Xtrackers Physical Gold ETC 15-Jun-60
USD
1,432,762 Gold
2 Xtrackers Physical Gold EUR Hedged ETC 15-Jun-60
EUR
7,316,111 Gold
4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60
EUR
881,851 Silver
6 Xtrackers Physical Platinum EUR Hedged ETC
14-Jul-60 EUR
1,028,656 Platinum
9 Xtrackers Physical Gold ETC (EUR)
27-Aug-60 USD
5,682,370 Gold
10 Xtrackers Physical Silver ETC (EUR)
27-Aug-60 USD
949,699 Silver
11 Xtrackers Physical Rhodium ETC 19-May-61
USD
72,561 Rhodium
12 Xtrackers Physical Rhodium ETC (EUR) 19-May-61
EUR
26,444 Rhodium
13 Xtrackers Physical Gold GBP Hedged ETC
01-Apr-61 GBP
1,957,185 Gold
For Series 10, the CCY has been presented in USD which aligns with the currency per the final terms and DWS ("Die Wertpapier
Spezialisten") website. However, the price per ounce is presented in EUR, per the reporting currency.
the following Series of ETC Securities were partially redeemed:
Precious
metals
As at 31 December 2024:
the Company’s total ETC Securities issued had a fair value of EUR 3,356,883,069 (2023: EUR 3,793,425,154);
the Company has invested in Precious metals with a fair value of EUR 3,350,758,394 (2023: EUR 3,785,751,088);
Platinum
Gold
Silver
Rhodium
Rhodium
Gold
Gold
Gold
Silver
The table below highlights the movement in foreign exchange during the year.
Precious metals with a value of EUR 6,124,675 (2023: EUR 7,674,066) was due to the Company from the Programme Counterparty under
the terms of the Balancing Agreement; and
Nominal (in
units)
Due to market forces, the prices of Gold, Silver and Rhodium have increased while the price of Platinum has slightly decreased. Further details
are provided below in the going concern section.
DB ETC plc
Page 4
Directors' report (continued)
Significant events
Future developments
Going concern
Business risks and principal uncertainties
Climate risk
Geopolitical Risk
Results and dividends for the year
Changes in Directors, Secretary and Registered Office
Directors, Secretary and their interests
Series 6 Xtrackers Physical Platinum EUR Hedged ETC (ISIN: DE000A1EK0H1),
Series 9 Xtrackers Physical Gold ETC (EUR) (ISIN: DE000A1E0HR8) and
Series 13 Xtrackers Physical Gold GBP Hedged ETC (ISIN: GB00B68FL050).
The Company is subject to various risks. The key risks facing the Company relate to their use of financial instruments and other risks (i.e. market
risk, credit risk, liquidity risk, operational risk, climate risk and geopolitical risk) arising from the Precious metals which are set out in note 14 to
the financial statements.
The business of the Company may be affected by factors that are beyond the Company’s control, such as geopolitical, economic and
business conditions. Current conflicts and possible outbreaks elsewhere in the world may lead to instability in certain regions together with
sanctions being imposed against certain countries, companies and/or individuals which could have an adverse economic impact.
The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of interest to all
stakeholders with a focus on how climate change is expected to impact the operations of the precious metals industry in areas such as mining,
processing, warehousing, transportation, societal response and the regulatory environment in the future.
The results for the year are set out on page 14. The Directors do not recommend the payment of a dividend for the year under review (2023: nil).
There has been no change in Directors, Secretary and Registered Office during the year.
The Company’s financial statements for the year ended 31 December 2024 have been prepared on a going concern basis. Each Series of ETC
Securities is referenced to a specific asset and any loss derived from the asset will be ultimately borne by the relevant ETC Securityholders. The
Directors anticipate that assets are readily realisable under the terms of the base prospectus and the Balancing Agreement with the Programme
Counterparty and hence, the Company will always have sufficient assets to meet the obligation of the ETC Securities as they fall due. The ETC
Securities in issue as at 31 December 2024 have final maturities ranging from 2060 to 2061. The Directors do not foresee any material net
redemptions in the next 12 months that would trigger going concern issues.
On 02 December 2024, the Company informed Securityholders of the Series below that the Programme Counterparty determined to change the
metal fixing time for the scheduled valuation days on 24 and 31 December 2024.
The Directors expect that the present level of activity will be sustained for the foreseeable future. The board of Directors of the Company (the
''Board'') will continue to seek new opportunities for the Company and will continue to ensure proper management of the current portfolio of
Series of the Company.
A high-level analysis was made on the liquidity and performance of the Company following the financial year end 31 December 2024. The
Directors note that there has mainly been a positive change in the values of Gold, Silver and Rhodium due to an increase in their prices as
compared to the financial year end 31 December 2023, while the price of Platinum has slightly decreased due to market forces. The increase in
the price of Gold is mainly due to its role as an effective hedge against the heightened geopolitical uncertainty and market volatility experienced
during the year. Strong central bank demand continued through the year, and investor demand accelerated in the second half of 2024 on the back
of looser US monetary policy. Despite some price volatility during the year due to the speculative nature of investor flows, factors including
increasing industrial demand, weakening mining supply, and safe-haven buying from investors all supported gains in the price of Silver. The
level of activity has remained stable post the financial year end. The Directors have also noted that the Administrator has taken measures to
ensure business continuity.
Series 1 Xtrackers Physical Gold ETC (ISIN: GB00B5840F36),
Series 2 Xtrackers Physical Gold EUR Hedged ETC (ISIN: DE000A1EK0G3),
However, having considered such factors relating to climate and geopolitical changes, the Directors have determined that there are no direct or
immediate impacts of climate and geopolitical changes on the business operations of the Company. Further details are provided in note 14 to the
financial statements.
None of the Directors or the Secretary who held office on 31 December 2024 held any shares or ETC Securities in the Company at that date, or
during the year. There were no contracts of any significance in relation to the business of the Company in which the Directors had any interest.
As disclosed in note 18, Related Party Transactions, Marc Harris, a director of the Company is an employee of an affiliate company of the
administrator and Visdirect Services Limited and Viscom Services Limited are affiliates of the administrator. See note 18 for full details of the
relationships entered into between the Company and its related parties.
DB ETC plc
Page 5
Directors' report (continued)
Shares and shareholders
Subsequent events
Subsequent events have been disclosed in note 21 to the financial statements.
Independent auditor
On behalf of the Board
Director
Date:
The authorised share capital of the Company is GBP 10,000 divided into 10,000 limited shares of GBP 1 each (the "Shares") of which 2 are
issued and fully paid and are directly or indirectly held by Vistra Nominees I Limited and Vistra Nominees II Limited (the "Share Trustees
")
under the terms of a declaration of trust (the "Declaration of Trust") under which the Share Trustees hold the benefit of the shares on trust for
charitable purposes. There are no other rights that pertain to the shares and the shareholders.
In accordance with the Companies (Jersey) Law 1991, KPMG Channel Islands Limited, Chartered Accountants and Recognised Auditor has been
appointed to continue in office.
DB ETC plc
Page 6
x
select suitable accounting policies and then apply them consistently;
x
make judgements and estimates that are reasonable, relevant and reliable;
x
x
x
We confirm that to the best of our knowledge:
x
x
On behalf of the Board
Director
Date:
The Directors are responsible for preparing the Directors’ Report and financial statements in accordance with applicable law and regulations.
the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company; and
the Directors’ report includes a fair review of the development and performance of the business and the position of the issuer, together with
a description of the principal risks and uncertainties that they face. The principal risks facing the Company are outlined in note 14 of the
financial statements.
We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for
shareholders to assess the Company’s position and performance, business model and strategy.
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and
disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements
comply with the Companies (Jersey) Law, 1991. They are responsible for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for
taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The Directors are also required by the Transparency (Directive 2004/109/EC) (Amendment) (No. 2) Regulations 2015 (the ''Regulations'') to
include a Directors’ Report containing a fair review of the business and a description of the principal risks and uncertainties facing the Company.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the Directors’ Report
Company law requires the Directors to prepare financial statements for each financial year. Under that law they are required to prepare the
financial statements in accordance with International Financial Reporting Standards as adopted by the EU and applicable law.
Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the
state of affairs of the Company and of its profit or loss for that year. In preparing these financial statements, the Directors are required to:
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the
financial statements;
Statement of Directors' responsibilities
Independent Auditor's Report to the Members of DB ETC plc
7
Our opinion is unmodified
We have audited the financial statements of DB ETC plc (the “Company”), which comprise the statement of
financial position as at 31 December 2024, the statements of comprehensive income, changes in equity and cash
flows for the year then ended, and notes, comprising material accounting policies and other explanatory
information.
In our opinion, the accompanying financial statements:
• give a true and fair view of the financial position of the Company as at 31 December 2024, and of the
Company’s financial performance and cash flows for the year then ended;
• are prepared in accordance with International Financial Reporting Standards as adopted by the EU; and
• have been properly prepared in accordance with the Companies (Jersey) Law, 1991.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable
law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are
independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard as
required by the Crown Dependencies' Audit Rules and Guidance. We believe that the audit evidence we have
obtained is a sufficient and appropriate basis for our opinion.
Key audit matters: our assessment of the risks of material misstatement
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of
the financial statements and include the most significant assessed risks of material misstatement (whether or not
due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of the engagement team. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. In arriving at our audit opinion above, the key
audit matters were as follows (unchanged from 2023):
The risk
Our response
Valuation of precious metals at fair
value
€3,350,758,394
; (2023:
€3,785,751,088)
Refer to note 3(e) accounting policy
and note 9 disclosures
Basis:
Precious metals at fair value (the
“Metals”) represent 99.6% of the
Company’s total assets at 31
December 2024 (2023: 98.9%).
The metals act as collateral for the
financial liabilities designated at
fair value through profit or loss
(“the ETC Securities”) issued by
the Company. The Metals are
accounted for at fair value.
The Company determines fair
value by revaluing the quantity of
Metals held at the reporting date to
the last market prices published by
the sources described in the
financial statements.
Our audit procedures included:
• Assessed the design and
implementation of controls over
valuation of the Metals.
• Engaged our valuation specialists
(iRadar) to independently price all
of the Metals to a third party pricing
source.
• Recalculated the values of Metals
taking into consideration the
independent price determined and
quantity held, and compared the
recalculated values to those
determined by the Company.
• Assessed the fair value
disclosures in the financial
Independent Auditor's Report to the Members of DB ETC plc
(continued)
8
The risk
Our response
Risk:
The reported fair value of the
Metals held may be materially
misstated.
statements for compliance with
IFRS requirements.
The risk
Our response
Existence of precious metals at fair
value
€3,350,758,394
; (2023:
€3,785,751,088)
Refer to note 3(e) accounting policy
and note 9 disclosures
Basis:
Precious metals at fair value (the
“Metals”) represent 99.6% of the
Company’s total assets at 31
December 2024 (31 December
2023: 98.9%).
The Metals act as collateral for the
financial liabilities
designated at
fair value through profit or loss
(“the ETC Securities”) issued by
the Company. The Metals are
accounted for at fair value.
The metals are held by an
independent Custodian and Sub-
Custodian.
Risk:
The Metals recorded do not exist.
Our audit procedures included:
• Obtained a portfolio listing of
physical metals from the
administrator of the Company as at
31 December 2024.
• Obtained independent
confirmation from the Custodian
and Sub-Custodian of the quantity
of Metals held in custody at the
reporting date.
• Agreed the amounts per the
accounting records to the
independent Custodian and Sub-
Custodian confirmations and
agreed any reconciling items to
supporting documents.
• Attended the Custodian’s
premises and observed
procedures performed with respect
to the security measures employed
and installed at the physical vault
by the Custodian and, obtained an
understanding of the Custodian’s
controls that it undertakes as part
of its business to fulfil its
contractual obligations under the
Custodian contract for
safeguarding client assets.
Independent Auditor's Report to the Members of DB ETC plc
(continued)
9
The risk
Our response
Valuation of financial liabilities
designated at fair value through
profit or loss (“ETC Securities”)
€3,356,883,069; (2023
€3,793,425,154)
Refer to note 3(f) accounting policy
and note 11 disclosures
Basis:
The issuance of ETC Securities is
central to the Company’s principal
activity. ETC Securities allow
investors to gain exposure to
movements in prices of Metals
without needing to take physical
delivery.
ETC Securities are accounted for
at fair value.
The Company determines fair
value in accordance with the
formula set out in the prospectus to
reflect the contractual price at
which the ETC Securities will be
issued or redeemed by the
Company at the reporting date.
This formula takes into account the
quantity of ETC Securities in issue
at the reporting date, and the price
of the relevant metals, adjusted for
product fees.
Risk:
A discrepancy in the inputs or
incorrect application of the formula
used to determine the fair value of
the ETC Securities may cause the
reported fair value of financial
liabilities designated at fair value
through profit or loss to be
materially misstated.
Our audit procedures included:
• Assessed the design and
implementation of the controls over
the valuation of ETC Securities.
• Assessed the appropriateness of
the methodology used to value the
ETC Securities, and consider
whether it represents fair value in
accordance with IFRS.
• Recalculated the fair value of ETC
Securities using published market
data on metals prices and compare
the recalculated values to those
determined by the Company.
• Assessed the fair value
disclosures in the financial
statements, for compliance with
IFRS requirements.
Our application of materiality and an overview of the scope of our audit
Materiality for the financial statements as a whole was set at €33.6 million, determined with reference to a
benchmark of total assets of €3,363,264,940, of which it represents approximately 1.0% (2023: 1.0%).
In line with our audit methodology, our procedures on individual account balances and disclosures were performed
to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually
immaterial misstatements in individual account balances add up to a material amount across the financial
statements as a whole. Performance materiality for the Company was set at 75% (2023: 75%) of materiality for the
financial statements as a whole, which equates to €25.2 million. We applied this percentage in our determination
of performance materiality because we did not identify any factors indicating an elevated level of risk.
Independent Auditor's Report to the Members of DB ETC plc
(continued)
10
We reported to the Board any corrected or uncorrected identified misstatements exceeding €1.7 million, in addition
to other identified misstatements that warranted reporting on qualitative grounds.
Our audit of the Company was undertaken to the materiality level specified above, which has informed our
identification of significant risks of material misstatement and the associated audit procedures performed in those
areas as detailed above.
Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate
the Company or to cease its operations, and as they have concluded that the Company's financial position means
that this is realistic. They have also concluded that there are no material uncertainties that could have cast
significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the
financial statements (the “going concern period").
In our evaluation of the directors' conclusions, we considered the inherent risks to the Company's business model
and analysed how those risks might affect the Company's financial resources or ability to continue operations over
the going concern period. The risks that we considered most likely to affect the Company's financial resources or
ability to continue operations over this period were:
• The Arranger’s requirement to continue using the Company; and
• The risk of securityholders redeeming a significant amount of the securities;
We obtain confirmation from management and the Arranger in relation to the requirement to continue using the
Company and performed inquiries related to the risk of securityholders redeeming a significant amount of the
securities.
We considered whether the going concern disclosure in note 2a to the financial statements gives a full and accurate
description of the directors' assessment of going concern.
Our conclusions based on this work:
• we consider that the directors' use of the going concern basis of accounting in the preparation of the financial
statements is appropriate;
• we have not identified, and concur with the directors' assessment that there is not, a material uncertainty
related to events or conditions that, individually or collectively, may cast significant doubt on the Company's
ability to continue as a going concern for the going concern period; and
• we found the going concern disclosure in the notes to the financial statements to be acceptable.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes
that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are
not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could
indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment
procedures included:
• enquiring of management as to the Company’s policies and procedures to prevent and detect fraud as well as
enquiring whether management have knowledge of any actual, suspected or alleged fraud;
• reading minutes of meetings of those charged with governance; and
• using analytical procedures to identify any unusual or unexpected relationships.
Independent Auditor's Report to the Members of DB ETC plc
(continued)
11
As required by auditing standards, we perform procedures to address the risk of management override of controls,
in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit
we do not believe there is a fraud risk related to revenue recognition because the Company’s revenue streams are
simple in nature with respect to accounting policy choice, and are easily verifiable to external data sources or
agreements with little or no requirement for estimation from management. We did not identify any additional fraud
risks.
We performed procedures including
• Identifying journal entries and other adjustments to test based on risk criteria and comparing any identified
entries to supporting documentation; and
• incorporating an element of unpredictability in our audit procedures.
Identifying and responding to risks of material misstatement due to non-compliance with laws and
regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the
financial statements from our sector experience and through discussion with management (as required by auditing
standards), and from inspection of the Company’s regulatory and legal correspondence, if any, and discussed with
management the policies and procedures regarding compliance with laws and regulations. As the Company is
regulated, our assessment of risks involved gaining an understanding of the control environment including the
entity’s procedures for complying with regulatory requirements.
The Company is subject to laws and regulations that directly affect the financial statements including financial
reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items.
The Company is subject to other laws and regulations where the consequences of non-compliance could have a
material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines
or litigation or impacts on the Company’s ability to operate. We identified financial services regulation as being the
area most likely to have such an effect, recognising the regulated nature of the Company’s activities and its legal
form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and
regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Therefore if
a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not
detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some
material misstatements in the financial statements, even though we have properly planned and performed our audit
in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations
is from the events and transactions reflected in the financial statements, the less likely the inherently limited
procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are
designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and
cannot be expected to detect non-compliance with all laws and regulations.
Other information
The directors are responsible for the other information. The other information comprises the information included
in the annual report but does not include the financial statements and our auditor's report thereon. Our opinion on
the financial statements does not cover the other information and we do not express an audit opinion or any form
of assurance conclusion thereon.
Independent Auditor's Report to the Members of DB ETC plc
(continued)
12
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
We have nothing to report on other matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us
to report to you if, in our opinion:
• adequate accounting records have not been kept by the Company; or
• the Company's financial statements are not in agreement with the accounting records; or
• we have not received all the information and explanations we require for our audit.
Respective responsibilities
Directors' responsibilities
As explained more fully in their statement set out on page 6, the directors are responsible for: the preparation of
the financial statements including being satisfied that they give a true and fair view; such internal control as they
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern; and using the going concern basis of accounting unless they either
intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable
assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at
.
The purpose of this report and restrictions on its use by persons other than the Company's
members, as a body
This report is made solely to the Company’s members, as a body, in accordance with Article 113A of the Companies
(Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
members, as a body, for our audit work, for this report, or for the opinions we have formed.
Report on Regulatory Requirements
European Single Electronic Format (ESEF)
The Company has prepared its annual report in ESEF. The requirements for this format are set out in the
Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification
of a single electronic reporting format (these requirements are hereinafter referred to as: the RTS on ESEF).
Independent Auditor's Report to the Members of DB ETC plc
(continued)
13
In our opinion, the annual report prepared in the XHTML format, including the financial statements as included in
the reporting package by the Company, has been prepared in all material respects in accordance with the RTS on
ESEF.
The directors are responsible for preparing the annual report including the financial statements in accordance with
the RTS on ESEF, whereby the directors combine the various components into a single reporting package. Our
responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package,
is in accordance with the RTS on ESEF.
Our procedures included amongst others:
• obtaining an understanding of the Company's financial reporting process, including the preparation of the
annual report in XHTML format;
• examining whether the annual report in XHTML-format is in accordance with the RTS on ESEF.
Shaun Robert Farley
For and on behalf of KPMG Channel Islands Limited
Chartered Accountants and Recognized Auditors
Jersey
2 April 2025
DB ETC plc
Page 14
Statement of comprehensive income
For the year ended 31 December 2024
Year ended Year ended
31-Dec-24 31-Dec-23
Notes EUR EUR
4
965,140,189
276,457,897
5
(965,140,189)
(276,457,897)
Operating profit before taxation
-
-
6
-
-
--
Net fair value gain on Precious metals at fair value and Precious metal due from the
Programme Counterparty
Net fair value loss on financial liabilities designated at fair value through profit or loss
Taxation
Profit or loss and total comprehensive income for the year
The notes on pages 18 to 37 form an integral part of the financial statements.
DB ETC plc
Page 15
Statement of financial position
As at 31 December 2024
31-Dec-24 31-Dec-23
Notes EUR EUR
7
2
2
8
6,381,869
33,315,933
9
3,350,758,394
3,785,751,088
Precious metal due from the Programme Counterparty
9
6,124,675
7,674,066
3,363,264,940 3,826,741,089
Other payables
10
6,351,869
33,285,933
11
3,356,883,069
3,793,425,154
3,363,234,938
3,826,711,087
12
2
2
30,000
30,000
30,002
30,002
3,363,264,940 3,826,741,089
Director
Date:
Precious metals at fair value
Retained earnings
Total equity
Total liabilities and equity
The financial statements on pages 14 to 37 were approved by the Board and authorised for issue on……………………… 2025.
On behalf of the Board
Total assets
The notes on pages 18 to 37 form an integral part of the financial statements.
Liabilities and equity
Liabilities
Equity
Share capital
Financial liabilities designated at fair value through profit or loss
Total liabilities
Assets
Cash and cash equivalents
Other receivables
DB ETC plc
Page 16
Statement of changes in equity
For the year ended 31 December 2024
EUR EUR EUR
2
30,000
30,002
-
-
-
-
-
-
2 30,000 30,002
Balance as at 01 January 2024
2
30,000
30,002
-
-
-
-
-
-
2 30,000 30,002
Total comprehensive income for the year
Total comprehensive income for the year
Profit for the year
Total comprehensive income for the year
Balance as at 31 December 2024
Share
capital
Retained
earnings
Total
equity
Balance as at 01 January 2023
Total comprehensive income for the year
Profit for the year
Balance as at 31 December 2023
The notes on pages 18 to 37 form an integral part of the financial statements.
DB ETC plc
Page 17
Statement of cash flows
For the year ended 31 December 2024
Year ended Year ended
31-Dec-24 31-Dec-23
Notes EUR EUR
-
-
26,934,064
(29,027,158)
(26,934,064)
29,027,158
5
965,140,189
276,457,897
4
(965,140,189)
(276,457,897)
-
-
2
2
722
Non-cash Transactions during the year include:
Issuance of ETC Securities 11
1,094,961,218
956,979,079
Redemptions of ETC Securities
11
(2,496,643,492)
(1,996,231,562)
Additions of Precious metals 9
(1,094,961,218)
(956,979,079)
Disposals of Precious metals 9
2,496,643,492
1,996,231,562
-
-
Cash and cash equivalents at end of the year
The notes on pages 18 to 37 form an integral part of the financial statements.
Net cash generated from operating activities
Movement in cash and cash equivalents
Cash and cash equivalents at start of the year
Cash flows from operating activities
Profit before taxation
Adjustments for:
Decrease/(increase) in other receivables
(Decrease)/increase in other payables
Net fair value loss on financial liabilities designated at fair value through profit or loss
Net fair value gain on Precious metals at fair value and Precious metal due from the
Programme Counterparty
DB ETC plc
Page 18
Notes to the financial statements
For the year ended 31 December 2024
1 General information
2 Basis of preparation
(a) Statement of compliance
Going concern
With respect to each Series of ETC Securities, the Company’s main assets are its holdings of underlying metal and its interests under the
Balancing Agreement. The obligations of the Company under the ETC Securities of a Series will be secured in favour of the Trustee by an
assignment by way of security of all the Company’s rights, title, interest and benefit present and future against the Secured Account
Custodian, the Subscription Account Custodian and any Sub-Custodian relating to the underlying metal in respect of this Series of ETC
Securities.
The net proceeds from the issue of a Series of ETC Securities are used to purchase an amount of metal which, in accordance with the
Custody Agreement for secured accounts will, to the extent possible, be allocated to physical metal bars or other metal shapes and be held
in the secured allocated account. Any remaining metal is held in the secured unallocated account. Such underlying metal is used to meet
the Company’s obligations under the relevant Series of ETC Securities and the relevant Balancing Agreement.
The ETC Securities issued are listed on various exchanges including London Stock Exchange, Swiss Stock Exchange, XETRA, Borsa
Italiana and Euronext Dublin.
The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the
European Union ("IFRS") and in accordance with the Companies (Jersey) Law 1991.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December
2024; the comparative information for the year ended 31 December 2023 presented in these financial statements has been
prepared using the same accounting policies.
The Company’s financial statements for the year ended 31 December 2024 have been prepared on a going concern basis. Each
Series of ETC Securities is referenced to a specific asset and any loss derived from the asset will be ultimately borne by the
relevant ETC Securityholders. The Directors anticipate that assets are readily realisable under the terms of the base prospectus
and the Balancing Agreement with the Programme Counterparty and hence, the Company will always have sufficient assets to
meet the obligation of the ETC Securities as they fall due. The ETC Securities in issue as at 31 December 2024 have final
maturities ranging from 2060 to 2061. The Directors do not foresee any material net redemptions in the next 12 months that
would trigger going concern issues.
The Company was incorporated on 6 August 2009 as a public limited company in Jersey under the Companies (Jersey) Law 1991, as
amended, with company number 103781.
The principal activity of the Company, under the Programme, is to issue from time to time Series of the ETC Securities, where recourse in
respect of each Series is limited to the proceeds of enforcement of the security over each respective Series' assets.
A high-level analysis was made on the liquidity and performance of the Company following the financial year end 31 December
2024. The Directors note that there has mainly been a positive change in the values of Gold, Silver and Rhodium due to an
increase in their prices as compared to the financial year end 31 December 2023, while the price of Platinum has slightly
decreased due to market forces. The increase in the price of Gold is mainly due to its role as an effective hedge against the
heightened geopolitical uncertainty and market volatility experienced during the year. Strong central bank demand continued
through the year, and investor demand accelerated in the second half of 2024 on the back of looser US monetary policy. Despite
some price volatility during the year due to the speculative nature of investor flows, factors including increasing industrial
demand, weakening mining supply, and safe-haven buying from investors all supported gains in the price of Silver. The level of
activity has remained stable post the financial year end. The Directors have also noted that the Administrator has taken
measures to ensure business continuity.
DB ETC plc
Page 19
Notes to the financial statements (continued)
For the year ended 31 December 2024
2 Basis of preparation (continued)
(b) Basis of measurement
x
Precious metal due from the Programme Counterparty is measured at fair value;
x
Precious metals at fair value are measured at fair value; and
x
Financial liabilities designated at fair value through profit or loss are measured at fair value.
The method used to measure fair values are discussed further in notes 3(e, f) and note 15 to the financial statements.
(c) Functional and presentation currency
(d) Use of estimates and judgements
Critical judgements in applying the Company’s accounting policies
Determination of measurement basis for precious metals
Determination of fair value of financial liabilities issued at fair value through profit or loss
Product fees
In the absence of a specific precious metals or gold bullion accounting standard under IFRS, the Directors believe that the most
appropriate basis for accounting for precious metals and gold bullion is at fair value. Please refer to note 3(e) “Precious metals
at fair value and Precious metals due from the Programme Counterparty” for further details.
The financial liabilities designated at fair value through profit or loss are measured using the prices calculated by Apex Fund
Services (Ireland) Limited (the "Determination Agent"), and not based on the quoted secondary price available on the
recognised stock exchanges for the financial liabilities at fair value through profit and loss as the Company does not have access
to these markets and can only transact at the prices calculated by the Determination Agent. Accordingly, consistent with IFRS
13.19, the Directors have determined that the principal market from the perspective of the Company is the market created
between the Company and the Authorised Participant. In the opinion of the Directors, this is the most appropriate method of
estimating fair value, as the Company is contractually obliged to settle the ETC Securities at their calculated price. Please refer
to note 3(f) “Financial instruments” to the financial statements for further details.
The product fees are a transaction cost borne by investors through a daily reduction in the metal entitlement of each ETC
Security. Accordingly, the product fees form an integral component of the determination of the daily fair values of the ETC
Securities, and are not separately accounted for as an expense of the Company. Please refer to note 3(f) “Financial instruments”
to the financial statements for further details.
The financial statements have been prepared on the historical cost basis except for the following material items in the Statement
of financial position:
Functional currency is the currency of the primary economic environment in which the entity operates. The Company does not
have an investment strategy limited to one currency, as such the currency of the assets held and Notes in issue is expected to
change periodically as a result of investor demand. The Directors believe that the functional and the presentation currency
should be EUR, in line with prior year, as EUR is the currency that most faithfully represents the economic effects of the
transactions, events and conditions of the Company's underlying operations.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and
expenses. The estimates and associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimates are revised and in any future periods affected. Details of material judgements and estimates
have been further described in accounting policy note 3(e) "Precious metals at fair value and Precious metal due from the
Programme Counterparty", note 3(f) “Financial instruments” and note 15 "Fair Values" to the financial statements.
The following are the critical judgements, apart from those involving estimations (which are presented separately below), that
the Directors have made in the process of applying the Company’s accounting policies and that have the most significant effect
on the amounts recognised in financial statements.
DB ETC plc
Page 20
Notes to the financial statements (continued)
For the year ended 31 December 2024
2 Basis of preparation (continued)
(d) Use of estimates and judgements (continued)
Key sources of estimation uncertainty
Precious metals at fair value and Precious metal due from the Programme Counterparty
(e) Changes in accounting standards
(i)
Effective date
1 January 2024*
1 January 2024*
1 January 2024*
(ii)
Effective date
1 January 2025*
1 January 2026**
1 January 2027**
** Not endorsed.
New standards, amendments and interpretations issued effective as of 01 January 2024:
Description
The Directors have considered the impact of the new standards, amendments and interpretations and do not consider
there to be a significant impact from these newly effective standards, amendments and interpretations.
Amendments to IAS 1 Presentation of Financial Statements : Classification of liabilities
IFRS 18 Presentation and Disclosure in Financial Statements
Amendments to IFRS 16 Leases
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures
Amendments to IFRS 9 and IFRS 7 The Classification and Measurement of Financial Instruments
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may
have a significant risk of causing a material adjustment to the carrying amounts of Precious metals and liabilities within the next
financial year, are discussed below.
The Directors have determined that the main estimates are in relation to the determination of the fair value of Precious metals at
fair value and Precious metal due from the Programme Counterparty using prices quoted by the London Bullion Market
Association, London Platinum and Palladium Market Association and Comdaq. Further details have been described in
accounting policy note 3(e) "Precious metals at fair value and Precious metal due from the Programme Counterparty" to the
financial statements.
Directors have considered the new standards, amendments and interpretations as detailed in the above table and do not
plan to adopt these standards early. The Directors anticipate that the adoption of those standards or interpretations will
have no material impact on the financial statements of the Company in the period of initial application.
Standards not yet effective, but available for early adoption
Description
Amendments to IAS 21 The effects of changes in Foreign Exchange Rates
*Where new requirements are endorsed, the EU effective date is disclosed. For un-endorsed standards and
interpretations, the International Accounting Standards Board's (the "IASB") effective date is noted. Where any of the
requirements are applicable to the Company, it will apply them from their EU effective date.
Specifically for IFRS 18 which will replace IAS 1 Presentation of Financial Statements and applies for annual reporting
periods beginning on or after 1 January 2027, the Directors are assessing the impact of the new accounting standard on
the Company's financial reporting.
DB ETC plc
Page 21
Notes to the financial statements (continued)
For the year ended 31 December 2024
3 Material accounting policies
(a) Foreign currency transactions
(b) Net fair value gain on Precious metals at fair value and Precious metal due from the Programme Counterparty
(c) Net fair value loss on financial liabilities designated at fair value through profit or loss
(d) Other expenses
(e) Precious metals at fair value and Precious metal due from the Programme Counterparty
Initial recognition
The Precious metal is recognised on the trade date when the Company has received the contractual rights to the assets.
Derecognition
Transactions in foreign currencies are translated into the functional currency at the date of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the reporting date are retranslated into the functional currency at the exchange
rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the
functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign
currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction.
Foreign currency differences arising on retranslation are recognised in the Statement of comprehensive income.
Gains and losses arising on retranslation of financial liabilities designated at fair value through profit or loss, Precious metals at
fair value and Precious metal due from the Programme counterparty are included in the Statement of comprehensive income
together with fair value gains and losses as noted below.
Net fair value gain on Precious metal relates to the movement in the prices of metals and includes all realised and unrealised fair
value changes and foreign exchange differences. Any gains and losses arising from changes in fair value of Precious metals and
changes in fair value of Precious metals due from the Programme Counterparty are recorded in net fair value gain on Precious
metals at fair value and Precious metals due from the Programme Counterparty at fair value in the Statement of comprehensive
income. Under normal circumstances, there is no realised gain on metals as realisation occurs based on the market price of the
metal, which is revalued daily, and on the metal entitlement of the associated series. Consequently, there is no realised gain on
metals. Details of recognition and measurement of Precious metals are disclosed in the accounting policy for Precious metals
(note 3(e) to the financial statements).
Net fair value loss on financial liabilities designated at fair value through profit or loss relates to ETC Securities issued by the
Company and includes all realised and unrealised fair value changes and foreign exchange differences. Any gains and losses
arising from changes in the fair value of the financial liabilities designated at fair value through profit or loss are recorded in net
fair value loss on ETC Securities in the Statement of comprehensive income. Details of recognition and measurement of
financial liabilities are disclosed in the accounting policy of financial instruments (note 3(f) to the financial statements).
All expenses, other than product fees recorded as a reduction in metal entitlement, are paid by the Arranger and as such, are not
reflected in these financial statements. Product fees are recorded as a reduction in metal entitlement in calculation of the fair
value of the ETC Securities.
The Company holds Precious metals and Precious metals due from the Programme Counterparty equal to the amount due to
holders of ETC Securities solely for the purposes of meeting its obligations under the ETC Securities.
The Precious metals are measured at fair value and changes in fair value are recognised in the Statement of Comprehensive
Income. Any costs to sell precious metal that arise in the course of settling the Company’s obligations under the ETC Securities
are borne by the holders of the ETC Securities (“ETC Securityholders”).
The Company derecognises Precious metals held at fair value when the contractual rights to the asset have expired, or the
Company has transferred the rights to the asset in a transaction in which substantially all the risks and rewards of ownership are
transferred.
DB ETC plc
Page 22
Notes to the financial statements (continued)
For the year ended 31 December 2024
3 Material accounting policies (continued)
(e) Precious metals at fair value and Precious metal due from the Programme Counterparty (continued)
Fair value measurement principles
The metal assets are valued using the appropriate metal prices:
x
x
x
x
Precious metals due from Programme Counterparty
(f) Financial instruments
Initial recognition
Classification
Accordingly, the financial assets and financial liabilities are classified into the following categories:
Financial liabilities at fair value through profit or loss:
x
Financial liabilities designated at fair value through profit or loss
Financial assets at amortised cost:
x
Cash and cash equivalents and other receivables
Financial liabilities at amortised cost:
x
Other payables
the gold is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Bullion
Market Association. The morning ("AM") fix on 31 December 2024 was used to value the gold as this was the last fix
price available from the London Bullion Market Association for the year.
the silver is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Bullion
Market Association. The fix on 31 December 2024 was used to value the silver as this was the last fix price available
from the London Bullion Market Association for the year.
Financial assets and financial liabilities are recognised initially at the trade date at which the Company becomes a party to the
contractual provisions of the instrument and are measured initially at fair value plus, for an item not at fair value through profit
or loss, transaction costs that are directly attributable to their acquisition or issue.
the platinum is recorded at fair value using the last available price, nearest or at year-end, quoted by the London
Platinum and Palladium Market. The AM fix on 31 December 2024 was used to value the platinum as this was the last
available fix price available from the London Platinum and Palladium Market for the year.
the rhodium is recorded at fair value using the last available price, nearest or at year-end, quoted by Comdaq. The fix
on 31 December 2024 was used to value the rhodium as this was the last fix price available from Comdaq for the year.
The valuation of metal assets held at fair value in the Statement of financial position is calculated after taking account of
adjustments to the Company’s metal entitlement arising from the accrual of product fees, hedge fees and other rebalancing
adjustments, consistent with the Balancing Agreements which are in place for each Series.
The Precious metals due from the Programme Counterparty represents the amount of metal entitlement of ETC Securities which
is not held physically by the custodian / sub custodian on behalf of the Company as at the reporting date but is due to be
received from the Programme Counterparty under the Balancing Agreement. Precious metals due from the Programme
Counterparty are accounted for at fair value through profit or loss.
The Company has designated the debt financial liabilities issued at fair value through profit or loss. For other financial
instruments, the classification is based on both the Company's business model for managing those Instruments and the
contractual cash flow characteristics of the instruments.
The value per ETC Security is calculated by multiplying the metal entitlement per ETC Security with the metal prices derived
from the above sources. The metal entitlement per ETC Security is obtained by subtracting the product fees for the relevant date
and, in respect of FX Hedged ETC Securities, adjusting for any foreign exchange gains or losses. The product fees are equal to
product fee percentage that is, 0.25% to 0.95%, multiplied by the Metal Entitlement per ETC Security for the prior Scheduled
Valuation Day and are accrued on a daily basis.
Per the base prospectus, these metal prices have fully transparent benchmarks, which are globally accepted as the basis for
pricing a variety of transactions, including industrial contracts and averaging business.
DB ETC plc
Page 23
Notes to the financial statements (continued)
For the year ended 31 December 2024
3 Material accounting policies (continued)
(f) Financial instruments (continued)
Subsequent measurement
Derecognition
Offsetting
(g) Other receivables
(h) Cash and cash equivalents
(i) Share capital
(j) Segment reporting
Financial assets and liabilities are offset and the net amount presented in the Statement of financial position when, and only
when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously.
Other receivables are accounted for at amortised cost.
Cash and cash equivalents include deposits held at call with the cash custodian which are subject to insignificant risk of changes
in their fair value, and are used by the Company in the management of its short term commitments.
Share capital is issued in GBP. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction from the proceeds.
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other components of the same entity). The Chief
Operating Decision Maker (the "CODM") of the operating segment is the Board. The CODM is responsible for all the
Company’s activities. The Company is a special purpose vehicle whose principal activities are the issuance of secured precious
metal linked securities and has invested in precious metals. The Board believes that each Series can be treated as a segment as
the return on each Series is linked to a different precious metal. Refer to notes 9 and 11 to the financial statements for the fair
values of the precious metals and ETC securities by Series.
After initial measurement, the instruments at amortised cost are recorded at the amount at initial recognition, minus principal
repayments, plus or minus the cumulative amortisation using the effective interest rate method or any difference between the
initial amount recognised and the maturity amount, minus any reduction for impairment. The effective interest method is a
method of calculating the amortised cost of an instrument and of allocating interest over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash flows (including all fees paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the
instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Impairment losses,
including reversals of impairment losses and impairment gains, are presented in the Statement of comprehensive income.
Financial liabilities designated at fair value through profit and loss are measured using the prices calculated by the
Determination Agent. Quoted prices are also available on recognised stock exchanges for the financial liabilities designated at
fair value through profit or loss. However, the Directors have determined that prices calculated by the Determination Agent
should be used as a measurement basis at 31 December 2024 and 31 December 2023 as these prices most accurately reflect the
obligations of the Company under the terms of the Series Issue Deeds. The prices are calculated using the spot price of the
relevant underlying metal adjusted for product fees and, in respect of FX Hedged ETC Securities, an adjustment for any foreign
exchange gains or losses. The product fees range from 0.25% to 0.95% per annum and are accrued on a daily basis by reducing
the metal entitlement of each ETC Security. Details of product fees for each Series is described in notes 5 and 11 to the
financial statements.
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained
by the Company is recognised as a separate asset or liability. The Company derecognises a financial liability when its
contractual obligations are discharged, cancelled or expired.
DB ETC plc
Page 24
Notes to the financial statements (continued)
For the year ended 31 December 2024
4 Year ended Year ended
31-Dec-24 31-Dec-23
EUR EUR
965,140,189 276,457,897
965,140,189 276,457,897
5 Year ended Year ended
31-Dec-24 31-Dec-23
EUR EUR
Net fair value loss on ETC Securities
(965,140,189) (276,457,897)
(965,140,189) (276,457,897)
Series
Description Year ended Year ended
31-Dec-24 31-Dec-23
EUR EUR
Series 1
Xtrackers Physical Gold ETC 1,000,456 901,163
Series 2
Xtrackers Physical Gold EUR Hedged ETC 7,274,038 8,364,025
Series 4
Xtrackers Physical Silver EUR Hedged ETC 1,074,434 998,909
Series 6
Xtrackers Physical Platinum EUR Hedged ETC 488,379 406,331
Series 9
Xtrackers Physical Gold ETC (EUR) 4,557,008 4,743,572
Series 10
Xtrackers Physical Silver ETC (EUR) 969,394 885,052
Series 11 Xtrackers Physical Rhodium ETC 275,068 319,923
Series 12 Xtrackers Physical Rhodium ETC (EUR) 95,336 92,722
Series 13 Xtrackers Physical Gold GBP Hedged ETC 2,363 214,154
15,736,476 16,925,851
6
7
31-Dec-24 31-Dec-23
EUR EUR
Cash at bank 22
22
Taxation
The Company is not a regulated financial service company from a Jersey Income Tax perspective. Therefore, the Company is liable to
Jersey Income Tax at 0%.
Net fair value gain on Precious metals at fair value and Precious metal due from the
Programme Counterparty
Cash and cash equivalents
Net fair value gain on Precious metals at fair value and Precious metal due from the Programme
Counterparty
Net fair value loss on financial liabilities designated at fair value through profit or loss
Product fees are recorded as a reduction in metal entitlement in calculation of the fair value of the ETC Securities with a corresponding
reduction in the fair value of Precious metals and hence not recorded separately in the Statement of comprehensive income as they are all
included in the net fair value loss on the financial liabilities and the net fair value gain on Precious metals. During the year, the Company
incurred the following product fees:
DB ETC plc
Page 25
Notes to the financial statements (continued)
For the year ended 31 December 2024
8
31-Dec-24 31-Dec-23
EUR EUR
Other receivable 30,000 30,000
Precious metal receivables* - 7,185,677
ETC securities receivables**
6,351,869
26,100,256
6,381,869 33,315,933
9
31-Dec-24 31-Dec-23
EUR EUR
3,350,758,394 3,785,751,088
Precious metal due from the Programme Counterparty 6,124,675 7,674,066
3,356,883,069 3,793,425,154
31-Dec-24 31-Dec-23
EUR EUR
3,793,425,154 4,556,219,740
Non-cash transactions
1,094,961,218 956,979,079
Disposals during the year (2,496,643,492) (1,996,231,562)
965,140,189 276,457,897
3,356,883,069 3,793,425,154
Metals CCY Fair value Fair value
CCY EUR
Series 1 Gold USD 137,696
-
137,696 2,610.85 359,502,542
347,243,505
Series 2 Gold EUR 451,119
-
451,119 2,508.26 1,131,524,284
1,131,524,284
Series 4 Silver EUR 4,998,743
-
4,998,743 27.77 138,824,618
138,824,618
Series 6 Platinum EUR 58,496
-
58,496 877.08 51,305,075
51,305,075
Series 9 Gold USD 546,430
-
546,430 2,610.85 1,426,647,622
1,370,578,406
Series 10 Silver USD 8,929,164
-
8,929,164 27.77 247,979,909
247,979,909
Series 11 Rhodium USD 5,714
649
6,363 4,495.00 28,602,485
27,627,140
Series 12 Rhodium EUR 1,556
763
2,319 4,320.04 10,018,108
10,018,108
Series 13 Gold GBP 12,628
-
12,628 2,082.52 26,298,737
31,782,024
3,356,883,069
Total Bullion
Holdings
(Ounce)
Precious metal due from the Programme Counterparty represents the amount of metal entitlement of ETC Securities which is not held as
physical metal inventory as at the reporting date but which is due to be received from the Programme Counterparty under the Balancing
Agreement.
The non-cash transactions relate to physical delivery of Precious metals to meet the redemption requests on debt financial liabilities or as
payment for subscriptions.
Other receivables
* Precious metal receivables relate to metals that have been traded as at 31 December 2024, but shall be settled post year end. As at 31
December 2024, there were no precious metal receivables (31 December 2023: unsettled disposals of 2,425 ounces of Gold at €1,871.93
each, in respect to Series 2 Xtrackers Physical Gold EUR Hedged ETC, 1,794 ounces of Platinum at €902.53 each, in respect to Series 6
Xtrackers Physical Platinum EUR Hedged ETC and 47,204 ounces of Silver at €21.74 each, in respect to Series 10 Xtrackers Physical
Silver ETC (EUR)).
Precious metals at fair value and Precious metal due from the Programme Counterparty at fair
value
Precious metals at fair value
** ETC securities receivables relate to ETC Securities that have been traded as at 31 December 2024, but shall be settled post year end.
There were unsettled issuances of 28,000 ETC Securities at €154.57 each, in respect to Series 2 Xtrackers Physical Gold EUR Hedged
ETC, unsettled issuances of 19,075 ETC Securities at €50.50 each, in respect to Series 6 Xtrackers Physical Platinum EUR Hedged ETC
and unsettled issuances of 4,400 ETC Securities at €241.08 each, in respect to Series 9 Xtrackers Physical Gold ETC (31 December 2023:
unsettled issuances of 188,500 ETC Securities at €125.60 each, in respect to Series 2 Xtrackers Physical Gold EUR Hedged ETC and
18,000 ETC Securities at €134.68 each, in respect to Series 4 Xtrackers Physical Silver EUR Hedged ETC).
Movement in Precious metals and Precious metals due from Programme counterparty at fair
value
At beginning of the year
Additions during the year
Net changes in fair value during the year
At end of the year
The fair values of the Precious Metal and Precious metals due from Programme counterparty by Series as at 31 December 2024 are as
follows:
Series
name
Total Metal holdings
(Ounce)
Price CCY (Clean
Price)
Precious metals due
from counterparty
(Ounce)
DB ETC plc
Page 26
Notes to the financial statements (continued)
For the year ended 31 December 2024
9
Metals CCY Fair value Fair value
CCY EUR
Series 1 Gold USD
196,619
- 196,619 2,062.40
405,507,788
367,349,505
Series 2 Gold EUR
628,234
2,942 631,176 1,865.44
1,177,421,534
1,177,421,534
Series 4 Silver EUR
5,972,617
70,266 6,042,883 21.48
129,801,135
129,801,135
Series 6 Platinum EUR
84,941
710 85,651 910.82
78,012,586
78,012,586
Series 9 Gold USD
951,664
16 951,680 2,062.40
1,962,745,033
1,775,302,121
Series 10 Silver USD
9,222,100
- 9,222,100 21.48
198,089,266
198,089,266
Series 11 Rhodium USD
6,425
- 6,425 4,330.00
27,821,437
25,203,440
Series 12 Rhodium EUR
2,342
- 2,342 3,912.18
9,160,821
9,160,821
Series 13 Gold GBP
17,678
- 17,678 1,622.49
28,682,051
33,084,746
3,793,425,154
Movement in fair values by Series for the year ended 31 December 2024
Series Acquisitions Disposals Closing
balance
01-Jan-24
31-Dec-24
EUR EUR EUR EUR EUR
Series 1 Gold USD
367,349,505 29,816,332 (162,357,235) 112,434,903
347,243,505
Series 2 Gold EUR
1,177,421,534 435,360,564 (746,878,876) 265,621,062
1,131,524,284
Series 4 Silver EUR
129,801,135 153,912,249 (166,407,760) 21,518,994
138,824,618
Series 6 Platinum EUR
78,012,586 47,617,090 (68,003,814) (6,320,787)
51,305,075
Series 9 Gold USD
1,775,302,121 337,061,840 (1,245,885,423) 504,099,868
1,370,578,406
Series 10 Silver USD
198,089,266 83,585,640 (89,094,376) 55,399,379
247,979,909
Series 11 Rhodium USD
25,203,440 - - 2,423,700
27,627,140
Series 12 Rhodium EUR
9,160,821 - - 857,287
10,018,108
Series 13 Gold GBP
33,084,746 7,607,503 (18,016,008) 9,105,783
31,782,024
3,793,425,154 1,094,961,218 (2,496,643,492) 965,140,189
3,356,883,069
Movement in fair values by Series for the year ended 31 December 2023
Series Acquisitions Disposals Closing
balance
01-Jan-23
31-Dec-23
EUR EUR EUR EUR EUR
Series 1 Gold USD
359,295,015 71,475,964 (99,243,826) 35,822,352
367,349,505
Series 2 Gold EUR
1,645,511,746 408,445,204 (1,032,856,458) 156,321,042
1,177,421,534
Series 4 Silver EUR
126,882,467 99,109,442 (92,570,333) (3,620,441)
129,801,135
Series 6 Platinum EUR
51,085,623 75,496,841 (47,978,343) (591,535)
78,012,586
Series 9 Gold USD
2,001,836,583 260,173,860 (643,888,110) 157,179,788
1,775,302,121
Series 10 Silver USD
241,804,020 32,273,415 (66,120,178) (9,867,991)
198,089,266
Series 11 Rhodium USD
71,692,060 - (337,533) (46,151,087)
25,203,440
Series 12 Rhodium EUR
26,313,253 - (184,689) (16,967,743)
9,160,821
Series 13 Gold GBP
31,798,973 10,004,353 (13,052,092) 4,333,512
33,084,746
4,556,219,740 956,979,079 (1,996,231,562) 276,457,897
3,793,425,154
Total Metal holdings
(Ounce)
Total Bullion
Holdings
(Ounce)
Precious metals due
from counterparty
(Ounce)
Precious metals at fair value and Precious metal due from the Programme Counterparty at fair
value (continued)
Metal
description
CCY Opening balance
Net changes in
fair values
Series
name
Price CCY (Clean
Price)
Metal
description
CCY Opening balance
Net changes in
fair values
The fair values of the Precious Metal and Precious metals due from Programme counterparty by Series as at 31 December 2023 are as
follows:
For Series 10, the CCY has been presented in USD which aligns with the currency per the final terms and DWS website. However, all
figures relating to this Series are being reported in EUR, per the reporting currency.
DB ETC plc
Page 27
Notes to the financial statements (continued)
For the year ended 31 December 2024
10
Other payables
31-Dec-24
31-Dec-23
EUR
EUR
ETC securities payables*
-
7,185,677
Payable against Precious metals contracts**
6,351,869
26,100,256
6,351,869 33,285,933
11
Nominal
Fair value
Nominal
Fair value
units units
issued
EUR
issued
EUR
ETC Securities issued 19,347,639 3,356,883,069 27,425,602 3,793,425,154
31-Dec-24
31-Dec-23
EUR
EUR
3,793,425,154 4,556,219,740
Non-cash transactions
Issue of ETC Securities issued during the year 1,094,961,218 956,979,079
Redemption of ETC Securities issued during the year (2,496,643,492) (1,996,231,562)
965,140,189 276,457,897
3,356,883,069 3,793,425,154
Series
Description CCY Product fees
Maturity Units Value per unit
Fair value
date Outstanding (CCY)
EUR
31-Dec-24
31-Dec-24
31-Dec-24
Series 1 USD
0.25%
15-Jun-60
1,432,762 250.92 347,243,505
Series 2 EUR
0.59%
15-Jun-60
7,316,111 154.66 1,131,524,284
Series 4 EUR
0.75%
15-Jun-60
881,851 157.42 138,824,618
Series 6 EUR
0.75%
14-Jul-60
1,028,656 49.88 51,305,075
Series 9 USD
0.25%
27-Aug-60
5,682,370 249.71 1,370,578,406
The ETC Securities issued are listed on various exchanges including London Stock Exchange, Swiss Stock Exchange, XETRA, Borsa
Italiana and Euronext Dublin. Refer to note 14 to the financial statements for a description of the key risks regarding the issue of these
instruments. The Company’s obligations under the financial liabilities issued are secured by the precious metals as per note 9 to the
financial statements. The investors’ recourse per Series is limited to the assets of that particular Series. The Series have an option for early
redemption.
The financial liabilities in issue at 31 December 2024 are as follows:
Xtrackers
Physical Gold
ETC
Xtrackers
Physical Gold
EUR Hedged
ETC
Xtrackers
Physical
Silver EUR
Hedged ETC
Xtrackers
Physical
Platinum EUR
Hedged ETC
31-Dec-24 31-Dec-23
Movement in ETC Securities issued
At beginning of the year
Net changes in fair value during the year
At end of the year
The non-cash transactions relate to physical delivery of ETC Securities to meet the redemption requests on debt financial liabilities or as
payment for subscriptions.
* ETC securities payables relate to ETC securities that have been traded as at 31 December 2024, but shall be settled post year end. As at
31 December 2024, there were no ETC securities payables (31 December 2023: unsettled redemptions of 36,000 units of Xtrackers
Physical Gold EUR Hedged ETC at €126.12 each, 28,900 units of Xtrackers Physical Platinum EUR Hedged ETC at €56.03 each and
5,000 units of Xtrackers Physical Silver ETC (EUR) at €205.22 each).
Financial liabilities designated at fair value through profit or loss
** Payable against Precious metals contracts relate to metals that have been traded as at 31 December 2024, but shall be settled post year
end. There were unsettled acquisitions of 1,726.28 ounces of Xtrackers Physical Gold EUR Hedged ETC at €2,507.06 each, 1,086.70
ounces of Xtrackers Physical Platinum EUR Hedged ETC at €886.35 each and 423.11 ounces of Xtrackers Physical Gold ETC at
€2,507.06 each (31 December 2023: unsettled acquisitions of 12,698 ounces of Xtrackers Physical Gold EUR Hedged ETC at €1,864.49
each and 111,517 ounces of Xtrackers Physical Silver EUR Hedged ETC at €21.74 each).
Xtrackers
Physical Gold
ETC (EUR)
DB ETC plc
Page 28
Notes to the financial statements (continued)
For the year ended 31 December 2024
11
Series
Description CCY Product fees
Maturity Units Value per unit
Fair value
date Outstanding (CCY)
EUR
31-Dec-24 31-Dec-24 31-Dec-24
Series 10 USD
0.40%
27-Aug-60
949,699 270.33 247,979,909
Series 11 USD
0.95%
19-May-61
72,561 394.19 27,627,140
Series 12 EUR
0.95%
19-May-61
26,444 378.84 10,018,108
Series 13 GBP
0.69%
01-Apr-61
1,957,185 13.44 31,782,024
19,347,639 3,356,883,069
The financial liabilities in issue at 31 December 2023 are as follows:
Series
Description CCY Product fees
Maturity
Units
Value per unit
Fair value
date
outstanding
(CCY)
EUR
31-Dec-23 31-Dec-23 31-Dec-23
Series 1 USD
0.25%
15-Jun-60 2,040,659 198.71
367,349,505
Series 2 EUR 0.59% 15-Jun-60
9,408,969 125.14
1,177,421,534
Series 4 EUR 0.75% 15-Jun-60
974,422 133.21
129,801,135
Series 6 EUR 0.75% 14-Jul-60
1,384,127 56.36
78,012,586
Series 9
USD 0.25%
27-Aug-60 9,870,227 198.55
1,775,302,121
Series 10 USD 0.40% 27-Aug-60
976,853 223.85
198,089,266
Xtrackers
Physical
Silver EUR
Hedged ETC
Xtrackers
Physical
Platinum EUR
Hedged ETC
Xtrackers
Physical Gold
ETC (EUR)
Xtrackers
Physical
Silver ETC
(EUR)
Xtrackers
Physical Gold
GBP Hedged
ETC
Xtrackers
Physical Gold
ETC
Xtrackers
Physical Gold
EUR Hedged
ETC
Financial liabilities designated at fair value through profit or loss (continued)
The financial liabilities in issue at 31 December 2024 are as follows: (continued)
Xtrackers
Physical
Silver ETC
(EUR)
Xtrackers
Physical
Rhodium ETC
Xtrackers
Physical
Rhodium ETC
(EUR)
DB ETC plc
Page 29
Notes to the financial statements (continued)
For the year ended 31 December 2024
11
The financial liabilities in issue at 31 December 2023 are as follows: (continued)
Series
Description CCY Product fees
Maturity
Units
Value per unit
Fair value
date
outstanding
(CCY)
EUR
31-Dec-23 31-Dec-23 31-Dec-23
Series 11 USD
0.95%
19-May-61 72,561 383.42
25,203,440
Series 12 EUR 0.95% 19-May-61
26,444 346.42 9,160,821
Series 13 GBP 0.69% 01-Apr-61
2,671,340
10.74
33,084,746
27,425,602 3,793,425,154
Movement in fair values by Series for the year ended 31 December 2024
Series Description Issuances Redemptions Closing
balance
01-Jan-24 31-Dec-24
EUR EUR EUR EUR EUR
Series 1 367,349,505 29,816,332 (162,357,235) 112,434,903 347,243,505
Series 2 1,177,421,534 435,360,564 (746,878,876) 265,621,062 1,131,524,284
Series 4 129,801,135 153,912,249 (166,407,760) 21,518,994 138,824,618
Series 6 78,012,586 47,617,090 (68,003,814) (6,320,787) 51,305,075
Series 9 1,775,302,121 337,061,840 (1,245,885,423) 504,099,868 1,370,578,406
Series 10 198,089,266 83,585,640 (89,094,376) 55,399,379 247,979,909
Series 11 25,203,440 - - 2,423,700 27,627,140
Series 12 9,160,821 - - 857,287 10,018,108
Series 13 33,084,746 7,607,503 (18,016,008) 9,105,783 31,782,024
3,793,425,154 1,094,961,218 (2,496,643,492) 965,140,189 3,356,883,069
Financial liabilities designated at fair value through profit or loss (continued)
Xtrackers
Physical
Rhodium ETC
Xtrackers Physical Gold
GBP Hedged ETC
Xtrackers Physical Silver
EUR Hedged ETC
Xtrackers Physical Platinum
EUR Hedged ETC
Xtrackers Physical Gold
ETC (EUR)
Xtrackers Physical Silver
ETC (EUR)
Xtrackers Physical Rhodium
ETC
Xtrackers Physical Rhodium
ETC (EUR)
Xtrackers
Physical
Rhodium ETC
(EUR)
Xtrackers
Physical Gold
GBP Hedged
ETC
Opening balance
Net changes in
fair values
Xtrackers Physical Gold
ETC
Xtrackers Physical Gold
EUR Hedged ETC
DB ETC plc
Page 30
Notes to the financial statements (continued)
For the year ended 31 December 2024
11
Movement in fair values by Series for the year ended 31 December 2023
Series Description Issuances Redemptions Closing
balance
01-Jan-23
31-Dec-23
EUR EUR EUR EUR EUR
Series 1 359,295,015 71,475,964 (99,243,826) 35,822,352 367,349,505
Series 2 1,645,511,746 408,445,204 (1,032,856,458) 156,321,042 1,177,421,534
Series 4 126,882,467 99,109,442 (92,570,333) (3,620,441) 129,801,135
Series 6 51,085,623 75,496,841 (47,978,343) (591,535) 78,012,586
Series 9 2,001,836,583 260,173,860 (643,888,110) 157,179,788 1,775,302,121
Series 10 241,804,020 32,273,415 (66,120,178) (9,867,991) 198,089,266
Series 11 71,692,060 - (337,533) (46,151,087) 25,203,440
Series 12 26,313,253 - (184,689) (16,967,743) 9,160,821
Series 13 31,798,973 10,004,353 (13,052,092) 4,333,512 33,084,746
4,556,219,740 956,979,079 (1,996,231,562) 276,457,897 3,793,425,154
12
31-Dec-24 31-Dec-23
GBP GBP
10,000 10,000
EUR EUR
22
22
As at 31 December 2024, the ordinary share capital was held by the following non-beneficial nominees:
31-Dec-24 31-Dec-23
GBP GBP
Vistra Nominees I Limited
11
Vistra Nominees II Limited
11
22
13
Financial liabilities designated at fair value through profit or loss (continued)
Opening balance
Net changes in
fair values
Xtrackers Physical Gold
ETC
Xtrackers Physical Gold
EUR Hedged ETC
Capital risk management
The Company is a special purpose vehicle set up to issue ETC Securities for the purpose of making investments as defined under the
programme memorandum and in each of the Series memorandum agreements. Share capital of GBP 2 was issued in line with Jersey
Company Law and is not used for financing the investment activities of the Company. The Company is not subject to any other externally
imposed capital requirements.
Authorised:
10,000 ordinary shares of GBP 1 each
Issued and fully paid:
2 ordinary shares of GBP 1 each
The authorised share capital of the Company is GBP 10,000, out of which 2 ordinary shares have been issued and fully paid. The nominees
have no beneficial interest in and derives no benefit from its holding of the shares. There are no other rights that pertain to the shares and
the shareholders.
Xtrackers Physical Gold
GBP Hedged ETC
Share capital
Xtrackers Physical Silver
EUR Hedged ETC
Xtrackers Physical Platinum
EUR Hedged ETC
Xtrackers Physical Gold
ETC (EUR)
Xtrackers Physical Silver
ETC (EUR)
Xtrackers Physical Rhodium
ETC
Xtrackers Physical Rhodium
ETC (EUR)
DB ETC plc
Page 31
Notes to the financial statements (continued)
For the year ended 31 December 2024
14 Financial risk management
Risk management framework
(a)
Market risk;
(b)
Credit risk;
(c)
Liquidity risk;
(d) Operational risk;
(e) Climate risk; and
(f) Geopolitical risk.
(a) Market risk
(i) Interest rate risk
(ii) Currency risk
Metals ETC Securities Net exposure
Series name Currency EUR EUR EUR
Series 1 USD
347,243,505 347,243,505
-
Series 9 USD
1,370,578,406 1,370,578,406
-
Series 10 USD
247,979,909 247,979,909
-
Series 11 USD
27,627,140 27,627,140
-
Series 13 GBP
31,782,024 31,782,024
-
2,025,210,984 2,025,210,984 -
Metals ETC Securities Net exposure
EUR EUR EUR
Series 1 USD
367,349,505 367,349,505 -
Series 9 USD
1,775,302,121 1,775,302,121 -
Series 10 USD
198,089,266 198,089,266 -
Series 11 USD
25,203,440 25,203,440 -
Series 13 GBP
33,084,746 33,084,746 -
2,399,029,078 2,399,029,078 -
The Company, and ultimately the holders of the ETC Securities, have exposure to the following risks from its use of financial instruments:
This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes
for measuring and managing these risks. Given the nature of the Company's activities, risk management disclosures for Precious metals at
fair value and Precious metals due from Programme Counterparty have been included alongside the the Company's financial instruments.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. The ETC Securityholders are
exposed to the market risk of the financial instruments.
Interest rate risk is the risk that the fair value or future cash flows of financials instruments will fluctuate as a result of a
change in interest rates. The ETC Securities, the Precious metal due from the Programme Counterparty and the
Precious metals do not bear interest. As such, the Company and ETC Securityholders have limited exposure to interest
rate risk.
Details of the currencies under each series for the Precious Metals and Financial liabilities designated at fair value
through profit or loss have been disclosed under the respective notes 9 and 11 to the financial statements.
The value of Precious metal due from the Programme Counterparty represents quantity of metal bullion, accordingly it
is not considered to be a currency exposure.
Currency risk is the risk which arises where the assets and liabilities of the Company are denominated in currencies
other than its functional currency. As at 31 December 2024, the Company is exposed to assets and liabilities
denominated in US Dollars ("USD") and Pound Sterling ("GBP").
The Company is not exposed to net currency risk since the foreign exchange movements in its financial liabilities will
be offset by the foreign exchange movements in its Precious metals. Any net foreign currency risk is borne by the ETC
Securityholders.
As at the reporting date, the carrying value of the Company’s assets and liabilities held in individual foreign currencies
were as follows:
31-Dec-24
31-Dec-23
DB ETC plc
Page 32
Notes to the financial statements (continued)
For the year ended 31 December 2024
14 Financial risk management (continued)
(a) Market risk (continued)
(ii) Currency risk (continued)
The following exchange rates have been applied during the year:
31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23
USD-EUR 0.92450 0.92466 0.96590 0.90590
GBP-EUR 1.18140 1.14997 1.20850 1.15350
(iii) Price risk
(b) Credit risk
31-Dec-24 31-Dec-23
EUR EUR
Precious metals at fair value
3,350,758,394
3,785,751,088
Precious metal due from the Programme Counterparty
6,124,675
7,674,066
6,381,869
33,315,933
2
2
3,363,264,940 3,826,741,089
Custodian risk
When a shortfall of Precious metal occurs, the shortfall is made up, in accordance with the terms of the Balancing
Agreement, through a balance of Precious metal being due from the Programme Counterparty. Accordingly, the ETC
Securityholders are exposed to the market price risk of their metal entitlement under the ETC Securities.
Any changes in the metal spot prices on the Precious metals held by the Company would not have any net effect on the
equity or the profit or loss of the Company since changes in the fair value of Precious metals or in the balance of
Precious metal due from the Programme Counterparty would be offset by corresponding changes in the fair value of the
ETC Securities and as such any price risk is ultimately borne by the ETC Securityholders.
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual
obligations. The Company’s principal assets are cash and cash equivalents, other receivables, Precious metals at fair value and
Precious metal due from the Programme Counterparty which represents the Company's maximum exposure to credit risk. All
credit risks are ultimately borne by the ETC Securityholders.
Other receivables
Cash and cash equivalents
Average rate - year ended Closing rate
The impact of changes in foreign exchange rates on the Precious metals at fair value is offset by the impact of foreign
exchange rate changes on the financial liabilities. Therefore any change in the exchange rates would have no net effect
on the equity or the profit or loss of the Company.
Price risk is the risk that changes in market prices of metals will affect the Company’s income, expense, Precious
metals and financial liabilities designated at fair value through profit or loss. The Company’s liabilities are exposed to
the market prices of the metals. However, the risk is mitigated by the Company holding quantities of physical Precious
metals equivalent to the weight of metal entitlement for each Series of ETC Securities issued.
The Company has no net credit risk given its obligations to the ETC Securityholders are limited in recourse to the amount
received on the Precious metals for each series of ETC Securities.
As at 31 December 2024, no financial assets carried at amortised cost were past due or impaired (2023: nil). All the assets have
been pledged as collateral for financial liabilities and are disclosed in note 9 to the financial statements.
The Company’s Custodian is JPMorgan Chase Bank N.A., London Branch (the “Custodian”) and the Sub-Custodian is
Johnson Matthey (the "Sub-Custodian"). Certain unallocated Rhodium is also held by Deutsche Bank AG, London Branch, the
Programme Counterparty. The Company’s ability to meet its obligations with respect to the ETC Securities is dependent
upon the performance of the Custodian of its obligations under the relevant Custody Agreement. The Directors have also
considered the credit risk and counterparty risk with the Custodian, the Sub-Custodian and Deutsche Bank AG, London Branch
as the Programme Counterparty, respectively of the allocated and unallocated Precious metals held by the Company given the
significance of the Precious metals to the overall financial position of the Company. As at 31 December 2024, the Company
held Precious metals at fair value of EUR 3,319,237,822 (2023: EUR 3,751,386,827) with JPMorgan, EUR 31,520,572 (2023:
EUR 32,164,960) with Johnson Matthey and EUR Nil (2023: EUR 2,199,301) with Deutsche Bank AG, London Branch, and
Precious metal due from the Programme Counterparty with a fair value of EUR 6,124,675 (2023: EUR 7,674,066) from
Deutsche Bank AG, London Branch.
DB ETC plc
Page 33
Notes to the financial statements (continued)
For the year ended 31 December 2024
14 Financial risk management (continued)
(b) Credit risk (continued)
Custodian risk (continued)
Concentration risk
By industry 31-Dec-24 31-Dec-23
Types of collaterals
%%
Gold 85 88
Silver 12 9
Platinum 22
Rhodium 11
100 100
By Geographical location 31-Dec-24 31-Dec-23
Country of origin
%%
United Kingdom 100 100
100 100
Other receivables
(c) Liquidity risk
EUR EUR EUR
Financial liabilities designated at fair value through profit or loss
3,356,883,069
3,356,883,069
3,356,883,069
Other payables
6,351,869
6,351,869
6,351,869
3,363,234,938 3,363,234,938 3,363,234,938
The precious metals are held by the Custodian and the Sub-Custodian in their vault premises in the United Kingdom. They have
no obligation to maintain insurance specific to the Company or specific only to the precious metal held for the Company against
theft, damage or loss. However, they maintain insurance in connection with their own business operation. The level of insurance
and particulars remains at the discretion of the Custodian and the Sub-Custodian. There is a risk that the precious metal could be
lost, stolen or damaged and the Company would not be able to satisfy its obligations in respect of the ETC Securities. In such an
event the Company would adjust the Metal Entitlement of each Security of the relevant Series to the extent necessary to reflect
such damage or loss.
Ultimately, all credit and counterparty risks associated with JP Morgan and Deutsche Bank are borne by the ETC
Securityholders.
Other receivables are mainly ETC securities receivables and precious metal receivables from Authorised Participants. It also
comprises an amount receivable from Vistra Fund Services Limited at the year end.
Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due. The Company limits its
exposure to liquidity risk given the Company’s ability to realise the Precious metals in cash and the Precious metals held by
each series match the securities issued and redemptions made. The ultimate amount repaid to the ETC Securityholders is limited
in recourse to the proceeds from the Precious metals. All liquidity risk associated with the Precious metals are ultimately borne
by the ETC Securityholders.
The contractual maturity profile of financial liabilities as at 31 December 2024 is as follows:
Carrying amount
Gross
contractual
Less than one
year
As the credit rating of JP Morgan Chase Bank NA, London Branch, is not available, the Directors have considered the overall
long term credit rating status of JPMorgan Chase Bank N.A (2024: S&P AA-) (2023: S&P A+), and are of the opinion that
counterparty risk is acceptable. The Directors have considered the overall credit rating status of Deutsche Bank AG (2024: S&P
bbb+) (2023: S&P bbb+) as the credit ratings for Deutsche Bank AG, London Branch is not available. The Directors are of the
opinion that counterparty risk is acceptable. The Directors believe that the counterparty risk and credit risk exposure of the
Company to the Sub-Custodian, Johnson Matthey, is not significant given that only approximately 1% (2023: 1%) of the total
value of Precious metals are held with this Sub-Custodian.
At the reporting date, the Company's Precious metals at fair value were concentrated in the following asset types and
geographical location:
DB ETC plc
Page 34
Notes to the financial statements (continued)
For the year ended 31 December 2024
14 Financial risk management (continued)
(c) Liquidity risk (continued)
EUR EUR EUR
Financial liabilities designated at fair value through profit or loss
3,793,425,154
3,793,425,154
3,793,425,154
Other payables
33,285,933
33,285,933
33,285,933
3,826,711,087 3,826,711,087 3,826,711,087
Subscriptions
Buy-backs
Redemptions
Final Redemption
(d) Operational risk
The contractual maturity profile of financial liabilities as at 31 December 2023 is as follows:
Carrying amount
Gross
contractual
Less than one
year
Due to the fact that upon the occurrence of an Early Redemption Event described below, the ETC Securityholders have the
option to redeem the securities before the final scheduled maturity date, the Directors have considered it appropriate to include
the financial liabilities designated at fair value through profit or loss in the less than one year category to reflect the earliest
possible liquidity profile of these securities based on the contractual arrangements.
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s
processes and infrastructure, and from external factors other than credit, markets and liquidity issues such as those arising from
legal and regulatory requirements and generally accepted standards of corporate behaviour.
Operational risks arise from all of the Company’s operations. The Company was incorporated with the purpose of engaging in
those activities outlined in note 1 to the financial statements. All administration functions are undertaken by Vistra Fund
Services Limited. Deutsche Bank AG, London Branch acts as the Company’s Lead Authorised Participant, Arranger, Metal
Agent, Issuing and Paying Agent and Programme Counterparty.
The carrying amount and the gross contractual obligations are equal to the fair value of each liability as stated in the Statement
of financial position.
Only Authorised Participants may subscribe for ETC Securities from the Issuer. The Authorised Participant(s) in respect of each
Series of ETC Securities at the Issue Date of such Series will be specified in the relevant final terms.
Securities may be offered to any category of potential investors provided that the offer complies with the selling restrictions as
defined in the Company’s Prospectus.
The Issuer may (without the consent of the Trustee or any Securityholder), from time to time, buy back all or some of the ETC
Securities. Only an Authorised Participant may request that the Issuer buy back ETC Securities by delivering a valid Buy-Back
Order subject to and in accordance with the terms of the Authorised Participant Agreement. The Issuer will only accept a Buy-
Back Order and buy back ETC Securities if a valid Buy-Back Order is given by an Authorised Participant and all conditions
precedent to a purchase of the ETC Securities are satisfied.
The ETC Securities of a Series may become due and payable prior to their Scheduled Maturity Date, which is known as an
“Early Redemption Event” as defined in the Company’s Prospectus. If any of the Early Redemption Events occur, each ETC
Security will become due and payable at an amount (the “Early Redemption Amount”) equal to the greater of (i) the Early Metal
Redemption Amount (the metal entitlement per ETC Security multiply the Average metals sale Price) (ii) the Minimum Debt
Amount.
Unless previously redeemed in whole or purchased and cancelled by the Issuer, the ETC Securities of each series will become
due and payable on their scheduled maturity date at their final redemption amount. The Issuer has the discretion to set the
Scheduled Maturity Date of a series of ETC Securities prior to the issue of that series of ETC Securities.
Their Final Redemption Amount and Early Redemption Amount depend on the Value per ETC Security, which in turn depends
on the value of the Underlying Metal and, in the case of FX Hedged ETC Securities, the Value per ETC Security and any gains
or losses on the foreign exchange hedge.
DB ETC plc
Page 35
Notes to the financial statements (continued)
For the year ended 31 December 2024
14 Financial risk management (continued)
(e) Climate risk
(f) Geopolitical risk
15 Fair values
x
Level 1: Quoted market price in an active market for an identical instrument.
x
x
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company does not have any assets or liabilities at level 3. Precious metals at fair value and Precious metals due from the Programme
Counterparty, except for Rhodium, remained unchanged at level 1 during the year ended 31 December 2024. Rhodium transferred from
level 1 to level 2. Financial liabilities remained unchanged at level 2.
The Company's assets and liabilities at fair value through profit or loss are carried at fair value in the Statement of financial position.
The Company’s accounting policy on fair value measurement for Precious metals and Precious metals due from the Programme
Counterparty is disclosed in note 3(e) to the financial statements. The Company's accounting policy on fair value measurement of financial
assets designated at fair value through profit or loss and financial liabilities designated at fair value through profit or loss is disclosed in
note 3(f) to the financial statements. The Company measures fair values using the following fair value hierarchy that reflects the
significance of the inputs used in making the measurements.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of
interest to all stakeholders with a focus on how climate change is expected to impact the operations of the precious metals
industry in areas such as mining, processing, warehousing, transportation, societal response and the regulatory environment in
the future. However, having considered such factors relating to climate change, the Directors have determined that there are no
direct or immediate impacts of climate change on the business operations of the Company. Given this, there is no basis on which
to provide extended information of analysis relating to climate change risks on the business operations of the Company.
Furthermore, the Directors conclude that at present there is no material impact to the fair value of financial instruments, assets
and liabilities of the Company. The Directors recognise that governmental and societal responses to climate change risks are
still developing and the future impact cannot be predicted. Therefore, the future fair value of assets and liabilities may fluctuate
as the market responds to climate change policies, physical events and changes in societal behaviours.
The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the
reporting date that would have been determined by market participants acting at arm’s length.
Level 2 prices use widely recognised valuation models for determining the fair value of common and more simple financial instruments
that use only observable market data and require little management judgement and estimation. Availability of observable market prices and
model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determination of
fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes
based on specific events and general conditions in the financial markets.
Transfers between levels are determined based on changes to the significant inputs used in their fair value measurement. The Directors
evaluate whether significant inputs to the valuation models are observable at the year end in making a decision to change levelling from
one level to another.
The Company determines the effective date of transfer at the beginning of the reporting year.
The business of the Company may be affected by factors that are beyond the Company’s control, such as
geopolitical, economic and business conditions. Current conflicts and possible outbreaks elsewhere in the world may lead to
instability in certain regions together with sanctions being imposed against certain countries, companies and/or individuals
which could have an adverse economic impact. However, having considered such factors relating to geopolitical change, the
Directors have determined that there are no direct or immediate impacts of geopolitical change on the business operations of the
Company. Given this, there is no basis on which to provide extended information of analysis relating to geopolitical change
risks on the business operations of the Company. Furthermore, the Directors conclude that at present there is no material impact
to the fair value of financial instruments, assets and liabilities of the Company.
DB ETC plc
Page 36
Notes to the financial statements (continued)
For the year ended 31 December 2024
15 Fair values (continued)
Level 1 Level 2 Level 3 Total
EUR EUR EUR EUR
Precious metal due from the Programme Counterparty
-
6,124,675
-
6,124,675
Precious metals at fair value
3,319,237,821
31,520,573
-
3,350,758,394
-
(3,356,883,069)
-
(3,356,883,069)
3,319,237,821 (3,319,237,821) - -
Level 1 Level 2 Level 3 Total
EUR EUR EUR EUR
Precious metal due from the Programme Counterparty
7,674,066
-
-
7,674,066
Precious metals at fair value
3,785,751,088
-
-
3,785,751,088
-
(3,793,425,154)
-
(3,793,425,154)
3,793,425,154 (3,793,425,154) - -
16 Classification of financial instruments and Precious metals
31-Dec-24 31-Dec-24 31-Dec-23 31-Dec-23
At fair value through profit or loss
EUR EUR EUR EUR
Precious metals at fair value
3,350,758,394
3,350,758,394
3,785,751,088
3,785,751,088
Precious metal due from the Programme Counterparty 6,124,675 6,124,675 7,674,066 7,674,066
(3,356,883,069) (3,356,883,069) (3,793,425,154) (3,793,425,154)
- - - -
At amortised cost
Cash and cash equivalents
2
2
2
2
Other receivables
6,381,869
6,381,869
33,315,933
33,315,933
(6,351,869)
(6,351,869)
(33,285,933)
(33,285,933)
30,002
30,002
30,002
30,002
17 Operating expenses
18 Related Party Transactions and connected parties
Other payables
Marc Harris, a Director of the Company is an employee of an affiliate company of the administrator and Visdirect Services Limited and
Viscom Services Limited are affiliates of the administrator.
Product fees incurred for the year ended 31 December 2024 due to the Arranger amounted to EUR 15,736,476 (2023: EUR 16,925,851).
No amount was payable as at 31 December 2024 (2023: EUR nil).
Visdirect Services Limited and Viscom Services Limited act solely in the capacity as Directors of Jersey companies, pursuant to the
Companies (Jersey) Law 1991, as amended. Visdirect Services Limited and Viscom Services Limited are both part of the Vistra group of
companies. No fee was charged or paid to the Vistra Group during the year under review by the Company for the provision of Directors.
All expenses of the Company are borne by Deutsche Bank AG, London Branch, as Arranger, including fees paid to Vistra. During the
financial year, the Company incurred a cost of EUR 45,000 (2023: EUR 45,000) relating to administration services provided by Vistra
Fund Services Limited.
All costs associated with the Company are paid by the arranger (the "Arranger") including audit fees. Audit fees incurred for the year
ended 31 December 2024 amounted to EUR 118,554 (2023: EUR 107,852).
Carrying
value
Fair
value
Carrying
value
Fair
value
Financial liabilities designated at fair value through profit
or loss
31-Dec-24
Financial liabilities designated at fair value through profit
or loss
At 31 December 2024, the carrying amounts of Precious metals at fair value, Precious metal due from the Programme Counterparty and
financial liabilities issued by the Company are as follows:
At 31 December 2023, the carrying amounts of Precious metals at fair value, Precious metal due from the Programme Counterparty and
financial liabilities issued by the Company are as follows:
31-Dec-23
Financial liabilities designated at fair value through profit
or loss
Although the Directors believe that their estimates of fair value are appropriate, the use of different methodologies or assumptions could
lead to different measurements of fair value as fair value estimates are made at a specific point in time, based on market conditions and
information about the financial instrument.
DB ETC plc
Page 37
Notes to the financial statements (continued)
For the year ended 31 December 2024
18
Related Party Transactions and connected parties (continued)
19 Ultimate controlling party
20 Key management personnel
The key management personnel have been identified as being the Directors of the Company.
21 Subsequent events
There have been no other significant subsequent events since the year end and up to the date of signing this report, …...........................,
that require disclosure in this financial statements.
Deutsche Bank AG, London Branch, as Programme Counterparty, entered into a Balancing Agreement with the Company. The
Programme Counterparty will provide deliveries of Precious metals to reflect deductions of fees and other rebalancing adjustments.
Precious metal due from the Programme Counterparty amounting to EUR 6,124,675 (31 December 2023: EUR 7,674,066) were
outstanding as at 31 December 2024.
Marc Harris is an employee of Vistra (Jersey) Limited during the year ended 31 December 2024. His emoluments are paid by Vistra Fund
Services Limited and other related entities and no recharge is made to the Company. It is therefore not possible to make a reasonable
apportionment of his emoluments in respect of the Company.
The Directors of the Company consider Vistra Corporate Services Limited as trustee of the DB ETC Charitable Trust (the beneficial owner
of the issued share capital of the Company) to be the ultimate controlling party of the Company.
Authorised participants are the only entities allowed to buy and sell ETC securities directly from and to the Company. Deutsche Bank AG,
London Branch acts as the Lead Authorised Participant. As at 31 December 2024, the number of ETC Securities held by the Lead
Authorised Participant was 3,382 units (EUR 821,518) (31 December 2023: 3,342 units (EUR 601,442)).
