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## Capital management 

As a result of the ability to issue, repurchase and resell Units of the Trust, the capital of the Trust as represented by the Unitholders’ capital in the statement of financial position can vary depending on the demand for redemptions and subscriptions to the Trust. The Trust is not subject to externally imposed capital requirements and has no legal restrictions on the issue, repurchase or resale of redeemable Units beyond those included in the Trust Agreement. The Trust may not issue additional Units except (i) if the net proceeds per Unit to be received by the Trust are not less than 100% of the most recently calculated NAV immediately prior to, or upon, the determination of the pricing of such issuance or (ii) by way of Unit distribution in connection with an income distribution. 

The Trust’s objectives for managing capital are: 

• To invest and hold substantially all of its assets in physical silver bullion; and 

• To maintain sufficient liquidity to meet the expenses of the Trust, and to meet redemption requests as they arise. 

Refer to “Financial risk management objectives and policies” (Note 10) for the policies and procedures applied by the Trust in managing its capital. 

## 9. Increase (Decrease) in Total Equity from operations per Unit 

Increase (decrease) in total equity from operations per unit is calculated by dividing the net income (loss) for the period attributable to the Trust’s unitholders by the weighted average number of units outstanding during the period. 

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## 10. Financial Risk and Management Objectives and Policies 

## Introduction 

The Trust’s objective in managing risk is the creation and protection of unitholder value. Risk is inherent in the Trust’s activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Trust’s continuing profitability. The Trust is exposed to market risk (which includes price risk, interest rate risk and currency risk), credit risk and liquidity risk arising from the silver bullion that it holds. Only certain risks of the Trust are actively managed by the Manager, as the Trust is a passive investment company. The risks are managed in accordance with the Trust’s offering documents. 

## Risk management structure 

The Trust’s Manager is responsible for identifying and controlling risks. 

