Absa lists NewPlat ETF

SA investors gain direct exposure to rand performance of platinum bullion

The corporate and investment banking division of Absa Bank Limited (Absa), member of Barclays, today listed the first fully backed physical platinum Exchange Traded Fund (ETF) on the Johannesburg Stock Exchange (JSE).

An investment in Absa’s NewPlat ETF issued by NewGold Issuer Limited, issuer of the largest ETF in the South African market, will provide investors with the opportunity to obtain exposure to the rand performance of platinum bullion.

“As a South African first, the NewPlat ETF demonstrates Absa’s innovation and leadership in bringing world class financial products to local investors at competitive rates,” says Vladimir Nedeljkovic, head of Investments at Absa’s Corporate and Investment Banking division.

Up until now, the only way for South African investors to access platinum was through Exchange Traded Notes (ETNs), like Absa’s NewWave Platinum ETN.

The listing of the NewPlat ETF is especially exciting for South African investors since the NewPlat ETF 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.

“Since ETNs, however, are treated as foreign assets, clients holding Absa’s platinum ETNs will have an opportunity to convert these into the NewPlat ETF at a cost of 1basis point, thereby freeing up clients offshore allocation,” added Nedeljkovic.

The 40 basis points cost associated with Absa’s NewPlat ETF compares favourably with other international platinum ETF offerings which range from 49 to 60 basis points per annum.