Absa lists NewPalladium ETF on the JSE
27 March 2014 | Investments | ETF's (Exchange Traded Funds) | Vladimir Nedeljkovic, Absa
SA investors gain direct exposure to Rand performance of palladium bullion.
The corporate and investment banking division of Absa Bank Limited (Absa), member of Barclays, today debuted its fully backed physical palladium Exchange Traded Fund (ETF) on the Johannesburg Stock Exchange (JSE).
NewPalladium joins 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 first day of trading for the new ETF saw 884,696 NewPalladium ETF securities, referencing approximately 8,867 ounces of palladium bullion issued and listed on the JSE.
"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.
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.
