Tema ETFs portfolio company interviews:
Royal Gold, Inc. (RGLD)
Royalties and Royal Gold
Gold mining is one of the materials industries that has most enthusiastically embraced royalties as a form of financing, giving rise to some of the biggest firms in the space. These gold royalty companies give access to unique assets and offer real contractual income along with equity-like growth. For investors they potentially serve as a lower beta diversifier, keeping them relevant in long- term portfolio allocations.
Our Global Royalties ETF portfolio manager Chris Semenuk speaks with Alistair Baker of Royal Gold, a leading gold royalty company, to discuss the industry and the firm's business model.
- What is a royalty?
- How has the Royal Gold stock price behaved against the S&P 500?
- How have higher interest rates impacted demand for royalty financing?
- What is Royal Gold’s dividend policy?
- Could there be consolidation in the gold royalty industry?
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com.
Read the prospectus carefully before investing.
Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.
Royalty Trust Structure Risk: the success of the fund is heavily dependent on royalty investments including investments in Royalty Income Trusts (RITs). Cash flows from royalty income can be contingent on the production of energy commodities. As such, the level of income received can be volatile as commodity prices, production levels, and production costs all vary wildly. Another consideration is that some royalty investments own intellectual property. In those cases, the trust could be subject to changes in intellectual property laws, which can impact the value of the assets held by the trust. Royalty trusts generally do not guarantee minimum distributions or even return of capital. Finally, Royalty Income Investments are still subject to market risks, such as interest rate fluctuations, currency risks, and overall market volatility. Industry Concentration Risk: because the Fund's assets will be concentrated in an industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries.
Sector Focus Risk: the Fund may invest a significant portion of its assets in one or more sectors and thus will be more susceptible to the risks affecting those sectors than funds that have more diversified holdings across a number of sectors. The Fund anticipates that it may be subject to some or all of the risks described below.
Investing in Foreign and emerging markets involves risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments. In addition, the fund is exposed to currency risk.
Because the Fund evaluates ESG factors to assess and exclude certain investments for non-financial reasons, the Fund may forego some market opportunities available to funds that do not use these ESG factors.
Tema Global Limited serves as the investment adviser to Tema Global Royalties ETF (the “Fund”), and NEOS Investments, LLC serves as a sub-adviser to the Fund. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema Global Limited nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck.