ABSA lists biggest platinum ETF on NSX
Madeliein Smith, the Managing Director of Namibia Equity Brokers, who was instrumental in introducing this new asset class to the Namibia Stock Exchange, confirmed that these funds qualify as domestic assets after approval has been obtained from the Namibian Financial Institutions Supervisory Authority.
Vladimir Nedeljkovic, Head of Exchange Traded Products at the Corporate and Investment Banking arm of Barclays Africa said, “Exchange traded funds have not been available to Namibian investors until now on the NSX. With the listing of NewGold, NewPlat and NewPalladium, Barclays Africa is creating a new asset class for Namibian investors while simultaneously increasing the liquidity of the NSX and deepening financial markets.”
NewGold currently has US$ 1.5 billion in assets under management, backed by 40 tonnes of gold bullion. In April 2013, Barclays Africa created the NewPlat ETF. It became the largest platinum exchange traded fund in the world, and the largest exchange traded fund in Africa. It currently holds 36 tonnes of physical platinum bullion underlying the securities in issue, with US$ 1.6 billion in assets under management.
NewPalladium currently has almost US$370 million in assets, backed by close to 14 tonnes of palladium. Namibia will be the third listing of NewPalladium.
“Exchange traded funds provide investors with a unique opportunity to gain direct exposure to the shifting spot price of a resource like gold, platinum or palladium. Exchange traded funds 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,” concluded Nedeljkovic.