The group of commodities covering rare earths is unique with respect to its functionality, as it has an impact on how efficient other raw materials can be used. Rare Earths are seen as key commodities for several high-tech products such as mobile phones, MP3 Players, wind power plants and LCD displays. In particular they are also made use of in the automobile industry, where they are playing major roles in the development of hybrid- and electric cars. As of today, demand for rare earths cannot be served by the current global supply. Experts are predicting a further increase in the demand for rare earths in the years to come.

• The various metals belonging to the group of rare earths are of global economic interest, as they are regarded as key commodities for technologies to become ever more important in the future such as:
- Hybrid and electronic automobiles
- LCD displays, touchscreens
- Energy saving lamps, wind turbines.
• As they are unique with respect to their functionality, and represent non-substitutable components, they affect other raw materials in how efficient cient they can be used.
• China is dominating the market for rare earth elements, as it accounts for approximately 97% of the total global production. As a result, the country controls the global supply, as well as technological progress, as it levies taxes on exports of rare earths.
• Currently, demand exceeds global supply.
• In comparison to more popular metals such as gold, silver and copper, metals representing rare earths are not tradable over the exchange.
• EFG Financial Products AG offers investors an opportunity to participate in the so called Solactive® Rare Earth Performance-Index* via a tracker certificate, which aims at reflecting the development of six companies, currently active in the area of rare earths.


3 Tracker Certificates

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*Index calculated by Structured Solutions AG