Sprott Asset Management LP, a unit of Sprott Inc. [SII-TSX, NYSE], has launched the Sprott ESG (SESG) gold exchange-traded fund, the world’s first ETF to exclusively source and refine gold from globally recognized mining leaders in ESG (environmental, social, governance) based on special criteria developed by Sprott.
The new ETF will begin trading on the New York Stock Exchange Arca today.
SESG is the first gold ETF that invests in gold bullion that meets the ESG and provenance standards specially developed by Sprott. Sprott has partnered with the Royal Canadian Mint (RCM) to provide investors with an ETF that only source gold from companies and mines that meet Sprott’s ESG screening criteria.
Initially, ESG approved gold will be sourced from several Canadian mines operated by Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) and Yamana Gold Inc. [YRI-TSX, AUY-NYSE], a company that is set to be acquired by South African giant Gold Fields Ltd. [GFI-NYSE, GFI] in a share exchange transaction worth US$6.7 billion. The combined company is expected to rank as the globe’s third largest gold producer and fourth largest by market capitalization.
“We created SESG to fill a gap in the market place with a gold fund focused on trust, transparency, and traceability,’’ said Johh Ciampaglia, CEO of Sprott Asset Management.
“Our goal is to answer a number of key questions for investors: where does my gold come from, who produced it and was it produced sustainably by recognized ESG leaders?” he said. “Through our partnership with the Royal Canadian Mint and our relationships with leading Canadian gold producers, Sprott is uniquely positioned to offer a convenient way for investors to own physical gold that aligns with their ESG values.’’
SESG’s investment objective is to closely reflect the performance of the price of gold by holding physical gold bullion that meets certain environmental, social and governance standards and criteria determined by the Sponsor and defined as “Sprott ESG Approved Gold.’’
The Fund is expected to consist primarily of fully allocated unencumbered physical gold bullion held by the Mint on behalf of the Fund that qualifies as Sprott ESG Approved Gold, plus from time-to-time gold in unallocated form.
Sprott will identify world-class North American gold mining companies with proven, highly transparent track records. Selected gold miners will also undergo additional due diligence conducted a individual mine sites to ensure that they are meeting local ESG best practises.
On Tuesday, Sprott announced its second quarter 2022 financial results saying assets under management were $21.9 billion as at June 30, 2022, down $1.7 billion from March 31, 2022 and up $1.5 billion from December 31, 2021.
Sprott Inc. shares eased $1.44 or 2.9% to $47.02 in light trading volume. The shares are currently trading in a 52-week range of $71.70 and $41.72.