Absa confirms listing of NewPalladium, its third commodity ETF
24 March 2014 | Investments | ETF's (Exchange Traded Funds) | Vladimir Nedeljkovic, Absa
The corporate and investment banking division of Absa Bank Limited (Absa), member of Barclays, today confirmed that it will list its palladium-backed Exchange Traded Fund (ETF), NewPalladium, on the Johannesburg Stock Exchange, on 27 March 2014.
NewPalladium will join a suite of commodity ETFs from Absa that include NewGold, the largest ETF in Africa, and NewPlat, the largest platinum ETF in the world and the second largest ETF in Africa. An investment in NewPalladium, issued by NewGold Issuer Limited, will provide investors with the opportunity to obtain exposure to the Rand performance of palladium bullion.
"The NewPalladium ETF further demonstrates Absa’s commitment to bringing world class financial products to local investors at competitive rates,” said Vladimir Nedeljkovic, Head of Exchange Traded Products at the Corporate and Investment Banking division of Absa.
"We will be able to provide full liquidity from the first day of listing, which means there is no limitation on trading. I am confident that the NewPalladium ETF will perform as well as NewGold and NewPlat,” added Nedeljkovic.
The listing of the NewPalladium is significant for South African investors since this fund, like NewPlat before it, is classified by the South African Reserve Bank as a domestic investment, not affecting the foreign exposure limits normally applicable to institutional investors and authorised dealers.
ETFs remain among the fastest growing investment funds in major markets across the world. They are attractive because of their low costs, tax efficiency and stock-like features.
