FNB Namibia introduces ETNs to enhance financial inclusion
First National Bank (FNB) Namibia on Tuesday launched the FirstRand Bank Limited Exchange Traded Note (ETN) program on the Namibian Stock Exchange (NSX).
The program offers a gateway for ordinary citizens to invest in renowned international companies like Amazon, Berkshire Hathaway, and Microsoft for as little as N$10.
According to a statement from the bank, the introduction of these ten listed instruments aims to facilitate international diversification in investment portfolios simply and cost-effectively. By leveraging the concept of micro-investing, the ETN program promotes financial inclusion, allowing individuals to access global investment opportunities without the complexities associated with offshore account opening processes.
Each ETN represents a fractional share in the listed companies and protects against currency depreciation of the Namibian Dollar, offering investors an affordable and accessible means to own shares offshore.
In addition to renowned international companies, the program includes ETNs offering exposure to diversified indices such as the iShares Core MSCI World index, comprising over 1,500 of the world’s largest companies across 20 countries, and the MSCI Socially Responsible Investment Index, managed by UBS, which prioritizes global companies with strong environmental and social scores while avoiding controversial investments.
To ensure liquidity and ease of trading, FNB provides active market-making on the primary exchange, facilitating seamless transactions for investors. It’s advised that potential investors seek professional financial advice to determine the suitability of these instruments based on their unique financial circumstances.
The ten ETNs listed on the NSX and their respective company names and codes are as follows:
Alphabet (Google) – ALETCN, Amazon – AMETCN; Apple – APETCN; Berkshire Hathaway – BHETCN; Meta (Facebook) – FAETCN; Microsoft – MSETCN; iShares Core MSCI World ETF – MWETCN; Netflix – NFETCN; Tesla – TSETCN; UBS MSCI World Socially Responsible USITS ETF – SRETCN.
